Why the RCEP trade deal could strengthen China’s hand in Asia as world waits to see what course US will take in future
- The United States has not signed the free-trade pact that includes three of Asia’s biggest economies and Asean member states
- Trade analysts say it is likely to give Beijing more influence over global trade and strengthen ties with neighbours
After eight years of negotiations, the 10 members of the Association of Southeast Asian Nations (Asean) plus Australia, China, Japan, New Zealand and South Korea signed the Regional Comprehensive Economic Partnership agreement on Sunday.
It was hailed as the world’s biggest trade deal, covering around 30 per cent of the world’s population and gross domestic product, and will establish common rules for e-commerce, trade and intellectual property.
It could come into force as early as next year and will eliminate up to 90 per cent of tariffs between signatories within 10 years of taking effect.
It is the first multilateral free-trade agreement China has ever joined, and comes amid the ongoing economic turmoil caused by the coronavirus pandemic and heightened tensions between Beijing and Washington.
