Some media have called the RCEP a Chinese-led effort, but analysts say it`s inaccurate. „For a long time, it wasn`t even dominated by China, although China is the largest economy in the agreement,“ says Michael Green, senior vice president for Asia at the Center for Strategic and International Studies. As a pilot, he cited Japan and ASEAN members, including Singapore. For one of these predictions to come true, the signatories must first ratify the agreement. Deborah Elms of the Asian Trade Centre, a consulting firm, expects this to happen by January 2022. Some hope that India will join India later, but the chances seem slim. (Fearing that its industry would be overwhelmed by imports from China, it withdrew from the negotiations.) Others hope that rcep will revive American interest in the region. Domestic policy will complicate bold trade initiatives for a Biden administration. But she`s going to watch. RCEP countries will also put in place a new framework of telecommunications rules, building on existing ASEAN free trade agreements, which will focus on improving access and use of public telecommunications systems and access to key telecommunications equipment.
The new framework will also ensure that RCEP countries do not discriminate 20%when providing access to submarine wiring systems. RCEP began as a clean-up operation and concluded the various trade agreements between the Association of Southeast Asian Nations (ASEAN) and Australia, China, Japan, New Zealand and South Korea in a comprehensive pact. This limits the impact of new business operations. Of the $2.3 billion in goods that passed between the signatories in 2019, 83% passed between those who already had a trade agreement. The heads of state and government of the signatories approved the terms of the Comprehensive Regional Economic Partnership (RCEP) at the Association of Southeast Asian Nations (ASEAN) summit in Bangkok last year, with the agreement officially signed on Sunday. In a joint statement, the signatories said the trade agreement would play an important role in pandemic recovery plans and help build the region`s resilience through an „inclusive and sustainable post-pandemic economic recovery process.“ The Asia-Pacific Trade Agreement (APTA) is a preferential regional trade agreement, formerly known as the Bangkok Agreement. The AptA aims to promote the economic development of its members by adopting mutually beneficial trade liberalization measures that contribute to regional trade expansion and economic cooperation. Over time, it has focused, from the first negotiations on tariff concessions in trade in goods, to the current negotiations on investment liberalization, trade in services and trade facilitation. It is also constantly working to improve and modernize its rules of origin for the trade in goods. In a joint statement, RCEP leaders said the signing of the agreement „shows our strong commitment to supporting the economic recovery“ following the pandemic recession, with job creation and „open, inclusive, rules-based trade and investment.“ Many Member States have already concluded free trade agreements, but there are restrictions.
The fourth round of negotiations will focus on areas that go beyond traditional tariff concessions in order to deepen trade policy cooperation and integration. APTA members are currently negotiating three framework agreements on trade facilitation, trade in services and investment. In addition, APTA members exchange information on non-tariff measures. APTA preferences may overlap with separate DFQF systems from China, India and the Republic of Korea, as well as preferences under the SAFTA, ASEAN-China, ASEAN-India and ASEAN-Republic of Korea regional trade agreements. The Asia-Pacific Trade Agreement (APTA), formerly (c)