Regional Comprehensive Economic Partnership (RCEP)

About

The Regional Comprehensive Economic Partnership (RCEP) is a landmark free trade agreement that brings together 15 Asia-Pacific nations, including the 10 members of the Association of Southeast Asian Nations (ASEAN) and five additional countries: Australia, China, Japan, New Zealand, and South Korea. Signed on November 15, 2020, and effective from 2022, RCEP aims to create a unified market by reducing tariffs and trade barriers, facilitating economic integration and growth across the region. It covers about 30% of the world's GDP and population, making it the largest free trade area globally. RCEP focuses on trade in goods and services, investment, intellectual property, and competition, providing a single set of rules to enhance regional supply chains. The agreement allows for the gradual elimination of tariffs on most goods over a 20-year period. It does not include provisions on labor or environmental standards, differing from other comprehensive agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). RCEP is seen as a strategic move by China to strengthen its economic influence in the Asia-Pacific region. Despite its potential benefits, critics argue that it does not adequately address non-tariff barriers.