Mega-regional trade agreement

Indian Economy glossary

Also called: Mega-regional · Topic: International Trade Policy, WTO and Intellectual Property · NCERT: Beyond NCERT

Meaning

A mega-regional trade agreement is a very large trade deal among many economies that together cover a big share of world trade. Such deals set trade rules for a whole region. A country that stays outside can lose market access and find it harder to join regional supply chains.

Example

RCEP has 15 members: the 10 ASEAN countries, China, Japan, Korea, Australia and New Zealand. India walked out in November 2019, citing:

  • its trade deficit with China;
  • the ratchet clause, which locks in any liberalisation;
  • weak safeguards against import surges;
  • rules of origin.

The CPTPP is another mega-regional; the UK became its first new member in December 2024.

Don't confuse with

  • Plurilateral agreement: a WTO-linked deal on one subject that binds only the members who sign it, such as the Information Technology Agreement. A mega-regional is a broad trade deal among a group of economies.

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