Australia Replaces India in RCEP Pact
India walked out of the Regional Comprehensive Economic Partnership. Meanwhile, Australia plans to sign the pact instead.
Australian Prime Minister, Scott Morrison, claims their economy’s involvement was “important” for the region’s security. He said it paves a way that investors see businesses engaging in a more open environment.
The Partnership aims to boost the region’s future growth prospects and help improve the global economy. They also plan to serve as pillars of robust multilateral trading systems while promoting Asian market development.
RCEP now associates the country with 10 ASEAN countries, including Japan, South Korea, Japan, New Zealand, and China.
The AUD/CNY pair inched down 0.05% at 4.8363. Analysts say the RCEP pact will solidify China’s power over the countries involved.
Meanwhile, AUD/USD rose 0.38% at 0.6910 when the Reserve Bank of Australia announced no changes in monetary policies.
The USD/CNY pair lost 0.43% at 6.9997. Chinese tech company Huawei forecasts boosted despite the US attempts to dent its business.
GBP/AUD dipped 0.23% at 1.8668 when the UK services PMI figure dropped the lowest between 2009 and 2019.
Meanwhile, the Chunnel exchange surged 0.41% at 1.1622 when the UK halted fracking with immediate effect. The UK Ministry warned shale gas companies it would not support future fracking projects.
India: Still Welcome to Rejoin the Pact
Despite Australia’s coincidental entrance into RCEP during India’s exit, Prime Minister Morrison said the country could come back anytime. Other RCEP nations also said they welcomed its massive economy into the pact as a counterweight.
Indian Prime Minister Narendra Modi said he stepped away because their recent form did not agree with their supposed ideals. Additionally, manufacturing and farming industries at home raised concerns that could harm small businesses in the country.
A joint statement by the RCEP countries said they would begin formal work against these issues before they finalize the deal in 2020.
India’s final decision will reportedly depend on how RCEP aims to resolve its given outstanding issues.