China-backed RCEP trade deal unlikely to benefit developing members in short term, analysts say
- Signed in November, the Regional Cooperation Economic Partnership (RCEP) is a free-trade agreement between 15 Asia-Pacific nations
- It is seen as a China-backed alternative to the US-led Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
The Regional Cooperation Economic Partnership (RCEP) is unlikely to bring immediate significant benefits for its developing member countries in terms of flow of goods and services or major infrastructure investments, analysts and economists said.
The pact needs to be ratified by all countries, which may take time, and has different levels of tariff reductions for each country and product, experts told the Reuters Global Markets Forum.
That means labour-intensive countries may get more imports than exports, particularly during the coronavirus pandemic, over the short-term.
The agreement might not be good for governments and workers, but still deliver profits for foreign investors
The pact has no provisions to improve labour rights in member countries, which has been exacerbated by the coronavirus pandemic to justify reductions in formal wages and conditions, said Kate Lappin, Asia-Pacific regional secretary at Public Services International.