The difference between CECA and CEPA
Countries that make agreements about economic cooperation make pacts with each other. These pacts are either CECA or CEPA. CECA is an acronym for Comprehensive Economic Cooperation Agreement and CEPA is an acronym for Comprehensive Economic Partnership Agreement. Just recently India signed a CEPA with Japan and a CECA with Malaysia. It also has a CECA with Korea and Singapore.
These terms are significant in terms of bilateral economic cooperation. These agreements are very similar, but the major difference is in the words “cooperation” and “partnership”. In CECA, the focus is on gradually reducing and eliminating tariffs on all items that are listed tariff rate quota items. In CEPA, there is an additional focus on trade in the areas of investments and services. Therefore CEPA is a much broader term than CECA.
Another difference is the manner in which they occur. First two countries sign a CECA and then they start moving toward eventually signing a CEPA. An example of this can be seen in the CECA agreement signed between India and Sri Lanka in 1998, which was called the Free Trade Agreement to gradually remove tariffs. When this goal was achieved in 2008, talks began about signing a CEPA to cover trade and investments.
- Economic agreements between countries are CECA and CEPA.
- CECA occurs first for the reduction of tariffs and CEPA follows.
- CEPA has a much broader scope than CECA.