Breaking Down Economic Pacts

A summary of Episode 2:

In this episode of IR Unfiltered, we unpack the world of economic pacts, the trade agreements that quietly influence your everyday life, from what’s on your dinner plate to how expensive your phone is.

First, we broke down what economic pacts even are. Basically, they’re deals between countries to help their economies grow together. These agreements open up trade, stabilise currencies, and help prevent financial disasters. Some are regional, some are global, but the goal is the same: win-win economics.

We started with BIMSTEC, which is a regional pact connecting countries around the Bay of Bengal, including India, Bangladesh, Sri Lanka, and Thailand. It’s India’s strategic way to work with its neighbours while sidestepping the drama of SAARC.

Then we moved to ASEAN, which includes countries like Indonesia and Vietnam. It’s a strong economic group that’s become a manufacturing giant. India isn’t a member, but it still trades closely with the region.

RCEP is the world’s largest trade agreement, covering almost a third of global GDP. It includes ASEAN and other big names like China and Japan. India backed out of it in 2019, worried about cheap imports hurting local businesses.

Next was CPTPP, a high-standard trade deal focused not just on trade, but also on issues like labour rights and environmental rules. It’s what remained of the TPP after the U.S. pulled out.

We also touched on IPEF, a U.S.-led framework that doesn’t cut tariffs but sets rules around digital trade, clean energy, and more. India’s in, but it skipped the trade pillar to protect its own interests.

The Asia-Pacific region (APAC) is a massive economic zone that includes powerhouses like India, China, and Australia. Many of the pacts we discussed fall under this umbrella.

Then there’s the European Union (EU), which is more than a trade pact, almost like one giant country in terms of economy, rules, and currency. But it requires countries to give up some national control, which is why Brexit happened.

Finally, we looked at BRICS: Brazil, Russia, India, China, and South Africa. It’s not a trade deal per se, but a powerful economic club challenging Western dominance. It’s expanding too, with more countries lining up to join.

The big takeaway?

These pacts shape everything from the job market to your online shopping. Understanding them helps you see how connected (and competitive) the world really is.

That’s a wrap for Episode 2. Tune in next week as we keep breaking down global politics in ways that everyone can understand.