Regional Comprehensive Economic Partnership (RCEP)

About

The Regional Comprehensive Economic Partnership (RCEP) is a landmark free trade agreement that encompasses 15 nations, including the 10 members of the Association of Southeast Asian Nations (ASEAN) and five additional countries: Australia, China, Japan, South Korea, and New Zealand. Signed on November 15, 2020, and coming into effect on January 1, 2022, RCEP represents the world's largest trading bloc, covering approximately 30% of global GDP and population. It aims to enhance economic integration and cooperation among its member states by reducing tariffs and trade barriers. RCEP's framework promotes trade liberalization, investment, and economic growth by creating a unified set of rules for trade in goods, services, and investment. While it is less comprehensive than some other agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), RCEP offers significant benefits by simplifying regional supply chains and fostering economic ties among diverse economies. It includes provisions for special and differential treatment to support less developed countries, ensuring that all members can benefit from the agreement.