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CEPA VS CECA
- CECA and CEPA are pacts between two countries for economic cooperation. While CEPA stands for Comprehensive Economic partnership Agreement, CECA is the short form of Comprehensive Economic Cooperation Agreement. The two terms came in light recently as India signed a CEPA with Japan and CECA with Malaysia. India also has a CEPA with South Korea. Another country with which India has recently entered into an economic pact is Singapore with CECA.
- CECA get signed between two countries first, and then the two countries move ahead in the direction of CEPA. To take an example, India and Sri Lanka signed off a treaty of economic cooperation called as Free Trade Agreement in 1998, which was in essence CECA. India embarked on gradual removal of tariffs which was finally achieved in 2003. Sri Lanka on its part started removing tariffs and achieved it in 2008. The two countries then started talks on CEPA which also covers trade in services and investments.
