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Asia is the largest trading partner, excluding the United States, the world’s largest economy. It is joined by 15 countries in the Asia-Pacific region.
The long-awaited Regional Integrated Economic Partnership (RCEP) agreement was signed on the sidelines of a virtual conference of the South Asian Association for Regional Cooperation (ASEAN) on Sunday. Economists believe this is a huge blow to the United States and will further increase China’s economic prestige.
Discussions about the formation of the RCEP alliance began about eight years ago. At first, the United States was also in the interest of former US President Barack Obama. However, in 2016, his successor, Donald Trump, withdrew from him. The Obama-led Trans-Pacific Partnership (TPP) is also a failure because of it.
Moving away from these two alliances will greatly reduce America’s influence in the world’s fastest-growing economic region. But the benefit is China.
Iris Pang, a senior economists at the economic services organization ING in the China region, said that RCEP could greatly reduce China’s dependence on foreign markets and technology.
The 10 member countries of ASEAN are Vietnam, Thailand, the Philippines, Laos, Cambodia, Myanmar, Malaysia, Singapore, Indonesia and Brunei. Includes China, Japan, South Korea, Australia and New Zealand.
To expand free trade, allied countries will reduce tariffs in various sectors in the coming years.
The long-awaited RCEP agreement will be signed on the sidelines of an online conference of ASEAN leaders on Sunday.
The global economy and 30 percent of the total population will be under this alliance. RCEP will also have a market of about 220 million million consumers.
Experts say the Trump administration, which has ousted the United States from the world’s largest alliance, has been toppled, but President-elect Joe Biden is unlikely to notice anytime soon. In the first year after entering the White House, you will be busy dealing with major issues like the Corona Crisis.
India also withdrew from the RCEP talks in November last year. Although ASEAN leaders say their doors are always open for the country.
Source: Reuters, Deutsche Welle
KAA / JIM
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