The Regional Comprehensive Economic Partnership (RCEP) includes countries stretching geographically from Japan to Australia and New Zealand, aiming to reduce tariffs, strengthen supply chains with common rules of origin, and systematize new e-commerce rules.
The passage of the agreement is believed to put pressure on a number of US companies and other multinationals outside the region, especially after President Donald Trump pulled the US out of the Partnership Agreement. Trans-Pacific (later the Comprehensive and Progressive Agreement for Trans-Pacific Partnership).
 |
After India withdrew from the RCEP negotiations in November 2019, the remaining 15 countries announced their goal of completing the agreement at the 4th RCEP Summit when Vietnam served as ASEAN Chair for the year. 2020. Malaysia's Minister of Industry and International Trade Azmin Ali once called the signing of the RCEP agreement the culmination of "eight years of negotiations with blood, sweat and tears".
Although the RCEP has a more modest level of commitment than the TPP, it is broader, encompassing many economies and commodities, and this is a rarity in the era of protection than today. The impact of the RCEP can extend beyond the region. RCEP has a more modest impact than TPP, but its implementation could make it harder for American businesses to compete with a RCEP partnership of 2.2 billion people with a total GDP of about $ 26 trillion. .
However, many countries participating in trade agreements are also wary of becoming too dependent on China economy. Japan is among the countries that have sought to reevaluate China's supply chains, and Beijing's move to ban key Australian exports underscores the risk of over-reliance on the economy. second largest in the world.
Although Joe Biden officially becomes the 46th president of the United States and re-joins the CPTPP, is still a big question, but some analysts still see it as the best means to The US deepens its economic relationship with the Asia-Pacific region. Southeast Asia, which has been coping with the Covid-19 pandemic, has seen an uneven recovery. The 10 countries differ greatly in terms of economic location, number and severity of successive outbreaks, availability and availability of monetary and financial stimulus, and closures and the rigor and concentration of industries that have been hit hard. For example, Thailand's GDP is among the countries expected to decline in 2020, down about 7.2% this year,
India surprised the countries participating in RCEP late last year when it decided to withdraw from the agreement. At the time, Indian Prime Minister Narendra Modi was concerned about the impact of the RCEP on the lives and livelihoods of all Indians, especially vulnerable parts of society. Despite withdrawing from the agreement, officials said India could rejoin the negotiations when it is decided accordingly. India's withdrawal from the agreement removed one of the biggest obstacles for the RCEP.
In June, the RCEP Ministers reaffirmed their determination to sign the agreement as global trade, investment and supply chains face unprecedented challenges posed by the Covid-19 pandemic. All major conferences and even technical meetings go to the end. RCEP officials always try to make the last and best offers until there is really no time left for any other compromises.