Regional Comprehensive Economic Partnership (RCEP) agreement to enter into force on 1 January 2022
What Is the Regional Comprehensive Economic Partnership (RCEP)? The Regional Comprehensive Economic Partnership (RCEP) is a free trade agreement (FTA) that will create the world's largest trading bloc and mark a significant achievement for China as it battles the U.S. for influence and economic supremacy in the Asia-Pacific region.
The Regional Comprehensive Economic Partnership is a free trade agreement among the Asia-Pacific nations of Australia, Brunei, Cambodia, China, Indonesia, Japan, South Korea, Laos, Malaysia, Myanmar, New Zealand, the Philippines, Singapore, Thailand, and Vietnam. The 15 member countries account for about 30% of the world's population and 30% of global GDP, making it the largest trade bloc in history. It is the first free trade agreement among the East Asian China, Japan, and South Korea, three of the four largest economies in Asia. As of 3 December 2021, six of the ten ASEAN and all five of the non-ASEAN signatories have deposited their instruments of RCEP ratification with the Secretary-General of ASEAN. The trade pact is projected to enter force on 1 January 2022.
RCEP covers a market of 2.2 billion people and $26.2 trillion of global output. The partnership will create a trade grouping that covers about 30% of the world`s population, as well as the global economy.
It is also larger than other regional trading blocs such as the United States-Mexico-Canada Agreement (USMCA) and the European Union.
Analysts have said that economic benefits of RCEP are modest and would take years to materialize.
Still, the deal was widely seen as a geopolitical victory for China at a time when U.S. economic influence in Asia-Pacific has waned.
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