The Impact of DGFT under Regional Comprehensive Economic Partnership

The DGFT also known as Directorate General of Foreign Trade is crucial in shaping India’s international trade and transforming global trade relations and the economy. As regional comprehensive economic partnership also focuses on making trading within certain countries easier, the DGFT also keeps its sharp eye on implementing this agreement efficiently.

The DGFT also plays several roles in RCEP under the Indian trading landscape, such as aiding businesses like yours in complying with trading policies. Today, we are going to discuss the role of DGFT in adhering to this agreement. You will explore the essential aspects of this agreement here.

The RCEP is a free trade agreement that involves negotiations between 10 ASEAN member states and their free trade agreement partners. Although India is not directly involved in this agreement because it decided to opt out after initial participation, it is still one of the ASEAN free trade agreement partners.

China, India, Japan, Australia, Korea, and other regional comprehensive economic partnership countries are some of those countries included in ASEAN free trade agreement partners. It is also known as the regional free trade agreement that complements and develops upon Australia’s free trade agreement with fourteen other Indo-Pacific nations.

If you are new to the trading world, you should remember that free trade agreements can potentially remove unnecessary barriers to imports and exports within two or more countries. However, each agreement has its own policies, rules, and regulations.

It signifies the emerging global economic architecture regarding RCEP. If you desire to understand its significance, you should understand the broader context of comprehensive FTAs like TPP and TTIP.

When it comes to regional trading agreements globally, the TTP would include the western region and RCEP the eastern region of the globe. Similarly, TTIP would include the central area. Therefore, RCEP offers strategic advantages for India in relation to its look East policy and the enlarged part of the engagement.

As we discussed before, the DGFT has the crucial part of regulating and facilitating international trading in India. Similarly, the Regional Comprehensive Economic Partnership is an agreement that aims to simplify the trading between some nations. Thus, DGFT also plays several essential roles in this agreement. So, let us take a look at the top key roles of this government agency in this agreement:

The regional comprehensive economic partnership aims to reduce tariff rates within the region. DGFT also attempts to facilitate the same thing by formulating tariff policies as well as trade agreements to negotiate favourable terms for your company and ensure fair competition in the international market.

The Regional Comprehensive Economic Partnership also aims to boost investment in the export and import market throughout the region. Therefore, DGFT takes several steps that encourage people like you to invest in the international trading market.

If you are an exporter in India, you can enjoy an incentive to import capital goods because DGFT aims to provide exporters with the incentive for importing capital goods at a zero-duty rate under the EPCG scheme. This scheme focuses on fostering investment upgradation and modernization of export-related industries.

Apart from the EPCG scheme, the DGFT has also implemented several schemes and policies to meet the aims of increasing investment in the international and local trade industry.

As we mentioned above, the Regional Comprehensive Economic Partnership (RCEP) includes policies and rules that you need to follow. DGFT formulates these policies mentioned under RCEP and other foreign trade policies and measures to promote and regulate India’s international trade. This agency also takes into account economic, social, and commercial interests while formulating international trading policies.

The primary goal of RCEP certification is to facilitate trading within the countries that come under the agreement. Similarly, the DGFT has also taken many initiatives to meet this goal and promote seamless trading. It facilitates trading by simplifying the trading process and decreasing paperwork. Plus, it also provides you with an online platform for the instant and efficient processing of several trade-related documents and transactions.

As discussed before, the regional comprehensive economic partnership includes several rules and policies. Although ensuring compliance with every rule is difficult, the DGFT has an aim to enforce trade regulations and policies.

Apart from ensuring compliance with RCEP, the DGFT also ensures compliance with other trading rules and regulations. They monitor, inspect, and enforce actions to find violations like smuggling and non-compliance to import-export norms.

The Regional Comprehensive Economic Partnership (RCEP) is an agreement to ease trading within certain nations. This agreement also includes several rules and motives. The DGFT aims to meet its motive through several steps. Plus, it plays several essential roles in making this agreement effective.