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15 Asian nations sign RCEP, world’s biggest free-trade deal, after eight years
- The Regional Comprehensive Economic Partnership accounts for about one-third of the world’s population and economy, but does not include the United States
- Agreement paves the way for lower tariffs, less red tape and post-pandemic growth, observers say
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China scored a “victory” on Sunday as 15 Asia-Pacific nations signed the world’s biggest free-trade pact, sealing an agreement that excludes the United States and extends Beijing’s economic sway in the region.
The realisation of the Regional Comprehensive Economic Partnership (RCEP) comes after eight years of negotiations.
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China scores victory as 15 Asia-Pacific nations sign RCEP, the world’s biggest free-trade deal
China scores victory as 15 Asia-Pacific nations sign RCEP, the world’s biggest free-trade deal
It also comes amid questions over Washington’s engagement in the region, with the US absent from two of the most important trade groups that span the world’s fastest growing region – the RCEP and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a rival trade bloc of 11 countries that went into effect in 2018.
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Soon after taking office in early 2017, US President Donald Trump withdrew the United States from the Trans-Pacific Partnership (TPP), the predecessor to the CPTPP.
On Sunday, leaders from China, Japan, South Korea, Australia, New Zealand and the 10 members of the Association of Southeast Asian Nations (Asean) witnessed the signing of the pact by their trade ministers by video conference.
The RCEP encompasses close to one-third of the world’s population and global economy, and is projected to add US$186 billion to the world economy through improved regional trade, according to New Zealand Minister for Trade and Export Growth Damien O’Connor.
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