Australia keen on penning RCEP trade pact this year despite disputes with China

Australian Treasurer Josh Frydenberg says worsening diplomatic ties with China will not impede progress of Regional Comprehensive Economic Partnership (RCEP)

Canberra will ‘advocate behind closed doors’ for a deal in its interests, while trade experts see positive sentiment among 15 negotiating countries

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Participants attend the 3rd Regional Comprehensive Economic Partnership (RCEP) Summit in Bangkok, Thailand, in November 2019. Photo: Xinhua

Published: 12:45pm, 10 Jul 2020Updated: 11:12pm, 10 Jul 2020

Australia has reaffirmed its commitment to signing the Regional Comprehensive Economic Partnership (RCEP) trade agreement despite rising political tensions with China – a key supporter of the treaty – possibly paving the way for a new platform for trade-conflict resolution between the two countries.

The Australian Department of Foreign Affairs and Trade also said on Wednesday that there was no change in Australia’s commitment to sign the RCEP.

At the 10th RCEP Ministerial Meeting two weeks ago, Australia and the other 14 RCEP countries – comprising the 10 members of Asean, plus Japan, South Korea, New Zealand and China – again pledged their commitment to sign the trade deal by the end of 2020.

However, negotiations to finalise the free-trade deal have been ongoing since the 19th meeting of the Association of Southeast Asian Nations (Asean) in November 2011 – almost a decade ago. But India withdrew last year, significantly diminishing the size of the deal, which focuses mainly on tariff reduction rather than the meatier standards and non-tariff barrier removals in other modern trade accords such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Australian Treasurer Josh Frydenberg said on June 23 that the worsening diplomatic ties between China and Australia would not get in the way of the progress of the RCEP.

However, he declined to comment on the remaining sticking points in the negotiations, saying Australia would continue to “advocate behind closed doors” for a deal that is in its interests.

International trade experts agreed that sentiment among negotiating countries remained positive despite recent political spats between Beijing and Canberra.