This view stems from the comparison of RCEP with CPTPP, which was touted as the “gold standard” in trade agreements. Some argue that RCEP is a “shallow” agreement in terms of tariff cuts and lacks substance on 21st-century trade issues like consumer protection and labor standards. The reception of RCEP has not been entirely positive. RCEP effectively consolidates the “Asian market” in ways that previous agreements, including the CPTPP (the Trans-Pacific Partnership's successor), have not.
The United States was a party to a broad Pacific Trade deal called the Trans-Pacific Partnership but withdrew, and the remaining 11 members stayed together to form the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). RCEP would also become the world's largest export supplier and second-largest import destination (Figure 2). The countries involved in the agreement accounted for nearly 30% of global GDP in 2019, topping NAFTA as the world's largest trade bloc (Figure 1). Why have some heralded RCEP as a landmark agreement? For starters, any trade agreement more than eight years in the making that brings together leaders from 15 members over 28 rounds of formal negotiation could be considered monumental. The formation of RCEP highlights the multilateral approach to trade rules in Asia and creates a bright contrast to the United States' current largely unilateral and bilateral approach to trade relationships. The Regional Comprehensive Economic Partnership (RCEP) was eight years in the making and includes the 10 nations of the ASEAN, Australia, Japan, New Zealand, South Korea, and China.
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He said the block would draw member economies closer and "greatly boost confidence in economic recovery from the pandemic.Last month, fifteen nations signed a free trade agreement of economic and political significance. "RCEP is of great significance building new development patterns and a milestone in opening up our economy," Ren said according to a transcript of a news conference on the ministry's website. 1, ratified it but that is pending acceptance by other members.īeijing is fully prepared for the new trading bloc, having already fulfilled 701 "binding obligations" for RCEP, Chinese vice minister for commerce Ren Hongbin said Thursday. Myanmar, whose government was ousted by the military on Feb. Indonesia, Malaysia and the Phlippines have yet to do so, though they are expected to ratify it soon. The pandemic slowed progress in ratifying the trade deal for some countries.Ĭhina was the first to ratify RCEP, in April, after it was signed in November 2020 at a virtual meeting of leaders from its 15 member countries.
But next year growth is expected to slow to 5.3%. They've bounced back, with the Asian Development Bank forecasting growth at 7.0% this year - boosted by low year-before figures. Regional economies contracted by 1.5% in 2020. RCEP is expected to boost trade within the region by 2%, or $42 billion, both through increased trade and also through diversion of trade as tariff rules change, experts say.Įxtra help will be needed: Two years of lockdowns, border closures, mandatory quarantines and other restrictions have cost millions of people their jobs while also contributing to disruptions in manufacturing and shipping that are snarling supply chains worldwide.Ĭountries confronted with outbreaks of the fast-spreading omicron coronavirus variant have reined in recent moves to reopen to international travel. But it has less stringent labor and environmental requirements than those expected of countries in the European Union or the smaller Trans-Pacific Partnership, which includes many of the same countries but not China. It also takes into account issues such as e-commerce, intellectual property and government procurement. The deal slashes tariffs on thousands of products, streamlining trade procedures and providing mutual advantages for member nations. The 15-member Regional and Comprehensive Economic Partnership, or RCEP, includes China, Japan, South Korea and many other Asian countries. 1 are hoping the initiative, encompassing about a third of world trade and business activity, will help power their recoveries from the pandemic. 1 are hoping the initiative, encompassing about a third of world trade and business, will help drive their recoveries from the pandemic.īANGKOK (AP) - Members of a China-centered Asian trade bloc that takes effect Jan. Members of a China-centered Asian trade bloc that takes effect Jan.
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