- The new RECP deal signed expected to eliminate a range of tariffs on imports within 20 years.
- Members make up nearly a third of the world’s population and 29% of global gross domestic product.
- India pulled out last year from RECP, over concerns of lower tariffs to hurt local producers.
RCEP is expected to eliminate a range of tariffs on imports within 20 years writes Tim McDonald for an article published in BBC News.
The new free trade zone will be bigger than both the US-Mexico-Canada Agreement and the European Union.
Members of RCEP
It includes the 10 members of the Association of Southeast Asian Nations (ASEAN), plus China, Japan, South Korea, Australia and New Zealand. The members make up nearly a third of the world’s population and 29% of global gross domestic product.
India was also part of the negotiations of RCEP. But pulled out last year, over concerned that lower tariffs could hurt local producers.
The RCEP was signed on the side lines of the mostly-online ASEAN conference this weekend.
Functions of RCEP
RCEP is expected to eliminate a range of tariffs on imports within 20 years. It also includes provisions on intellectual property, telecommunications, financial services, e-commerce and professional services. Under RCEP, parts from any member nation would be treated equally.
It brings together countries that have often had prickly diplomatic relationships – notably China and Japan.
Although the RCEP was an ASEAN initiative, it is regarded by many as a China-backed alternative to the Trans-Pacific Partnership (TPP).
Comments on RCEP
Australia’s former Prime Minister Malcolm Turnbull
At an online event at the Peterson Institute of International Affairs he said that “the new deal was old-fashioned.”
“There’ll be some hoopla about the signing and the entry into force of RCEP. I mean RCEP is a really low ambition trade deal. We shouldn’t kid ourselves”, said Mr. Turnbull, who signed Australia up to the TPP.
Deborah Elms commented
“The existing FTAs can be very complicated to use compared to RCEP,” said Deborah Elms, from the Asian Trade Centre.
“You can both co-operate with someone and just loathe them, even as a human being. RCEP has done an impressive job of separating itself from other things,” said Ms. Elms.
Did you subscribe to our daily newsletter?
It’s Free! Click here to Subscribe!
Source: BBC News
