Sri Lanka, Bangladesh in queue to join RCEP: Singapore foreign minister

New Delhi: Singapore foreign minister Vivian Balakrishnan has said India's neighbours Sri Lanka and Bangladesh, along with Hong Kong, are in queue to join the Regional Comprehensive Economic Partnership (RCEP).

"We wanted India to be part of it (RCEP). In the end, India could not, because India was anxious. Its main anxiety was the very asymmetrical trade balance with China because they do not have a free trade agreement with China, but also what impact it would have on its own economy. So anyway, India pulled out," Balakrishnan told the Financial Times in a recent wide-ranging interview, during which he also discussed how Singapore is navigating the tariff war between the US and China and impact of US tariffs on Singapore. "What was meant to be 16 became 15. Ten, plus five, and we got the RCEP over the finish line and it is coming to effect."

The Singapore Foreign Minister said: "Today, we have queues for RCEP. We have got Hong Kong, Sri Lanka and Bangladesh. You can see there is interest to come on board the RCEP."


The minister said Singapore's perspective, actually its larger vision for both Trans-Pacific Partnership (TPP) and RCEP, was to create a free trade area for Asia-Pacific. "Because if you combine the two, it actually casts a wide net, across the Pacific Ocean. Again, makes the same point, even in the absence of America, there is still the recognition of the economic logic for free trade and economic integration," Balakrishnan said.

It may be pointed out that among RCEP members, Singapore and Japan were keen that India could join the group at a later stage, even after New Delhi pulled out at the last moment.

Analysts pointed out that had India joined RCEP, the situation could have worsened drastically, as it would face zero-tariff imports from China, risking further Sino-Indian imbalance.