The RCEP comprises of 10 ASEAN members and its six free trade agreement partners, India, China, Japan, Korea, Australia and New Zealand. They are negotiating more accessible regulation agendas for ecommerce business in the Asia=Pacific region, bgr.in reports.
India’s FDI policy restricts ecommerce companies from offering services directly to retail consumers. However, Foreign direct investment (FDI) is allowed in business-to-business ecommerce. Japanese companies, including Uniqlo, have sought relaxations in the foreign investment norms in the sector. Japan is an important partner country for India as it has committed huge investments in areas such as Delhi-Mumbai industrial corridor and other infrastructure related projects.
India is one of the fastest growing ecommerce markets in Asia-Pacific, along with China. Increase in internet penetration, adoption of smartphones and lower data rates are completely changing the way India shops, and estimates reveal that the sector’s market size in the country is around USD 5 billion annually, the source cites.
The RCEP negotiations were launched in Phnom Penh, Cambodia in November 2012. The RCEP 16 economies account for over a quarter of the world economy. The last round of RCEP negotiations was concluded in Bangkok, Thailand earlier in February 2014. The trade deal aims to cover goods and services, investments, economic and technical cooperation, competition and intellectual property.
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