Japan approves world’s biggest free-trade deal after China’s call to boost Asian economy
- 15-nation partnership is expected to cover nearly one-third of the world’s economy, trade and population and to come into effect from early 2022
- Vice-minister of foreign affairs calls for efforts to defend the multilateral trade system and expressed interest in China joining CPTPP
The approval by Japan’s upper house comes after the lower house gave the green light earlier this month and a day after China called for the deal to be ratified to shore up the economy in the Asia-Pacific.
The China-backed RCEP was signed in November last year and included the 10 members of the Association of Southeast Asian Nations (Asean) plus China, Japan, South Korea, Australia and New Zealand. By eliminating tariffs on 91 per cent of goods, the RCEP will create a free-trade zone covering nearly one-third of the world’s economy, trade and population.
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RCEP: 15 Asia-Pacific countries sign world’s largest free-trade deal
It will also be the first deal of its kind involving China, Japan and South Korea, and comes as the three countries struggle to negotiate a trilateral free-trade agreement.
Japan’s government said in March that it expected the trade accord to boost the country’s GDP by 2.7 per cent and create 570,000 jobs.
Thailand and Singapore have also ratified the agreement. The deal will go into force 60 days after six of the Asean members and three non-Asean member states ratify it.
