Fifteen Asian-Pacific nations are scheduled to sign the Regional Comprehensive Economic Partnership (RCEP) on Nov. 15, after eight years of negotiations, a step forward which will form the world’s largest trade pact.
The Association of Southeast Asian Nations (ASEAN) first proposed this pact in 2012. It will include the 10 ASEAN nations (Brunei, Myanmar, Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand and Vietnam), along with China, Japan, South Korea, New Zealand and Australia. The participation of China and Japan in the same trade pact is quite significant.
The Obama-Biden administration originally posed the Trans-Pacific Partnership in opposition to RCEP, and as part of pushing the U.S. Pivot to Asia against China.. But President Donald Trump withdrew the United States’ signature on TPP within the first month he was in office.
Looking to the Nov. 15 RCEP signing, Malaysia’s Trade Minister Mohamed Asmin said at the ASEAN online conference this week, “After eight years of negotiating with blood, sweat and tears, we have finally come to the moment where we will seal the RCEP Agreement this Sunday.” ASEAN 2020 chair Vietnam’s Prime Minister Nguyen Xuan Phuc also confirmed the pact would be signed this week during opening remarks at the summit, AFP reported Nov. 11.
The RCEP agreement potentially incorporates 3.3 billion people, which is 45% of the world’s population (were India to rejoin) and 40% of world trade. RCEP will remove some inter-country restrictions on trade in goods, services, investment, etc. This will produce some real benefit only if it is tied to science and intensive economic development. This is where the Belt and Road Initiative will come in; it can provide an infrastructure platform of water management, high-energy flux density power development, and transportation, as well as the upgrade of manufacturing to direct the RCEP in the right direction. Japan also has expertise in this area.
