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Original Title: RCEP Signing for Asia-Pacific’s Largest Free Trade Zone
RCEP Signed: Asia-Pacific Demolished Wall to Build Largest Free Trade Zone
Text / Li Hongdi
Published in China News Weekly No. 973 on November 23, 2020
On November 15, the fourth meeting of leaders of the Regional Comprehensive Economic Partnership Agreement (RCEP) was held via video. All ten ASEAN countries and 15 countries, including China, Japan, South Korea, Australia and New Zealand, have formally signed the RCEP agreement, which means that about a third of the world economy will form an integrated market. Officially disclosed data shows that in 2019, the 15 RCEP member states have a total population of 2.27 billion, a GDP of US $ 26 trillion, and a total export value of US $ 5.2 trillion, each of which it represents almost 30% of the world total.
The construction process of the Free Trade Zone began on November 20, 2012. During the East Asian Leaders Meeting in Phnom Penh, Cambodia, the leaders of the ten ASEAN countries and China, Japan, South Korea, India, Australia, New Zealand and other countries jointly issued the “Joint Declaration to Begin Negotiations.
The competent person in charge of the International Department of the Ministry of Commerce summarized the importance of the agreement from three aspects: RCEP will become an important platform for China to expand openness in the new era; RCEP will help China to form a new national and international dual-cycle development pattern; RCEP will significantly improve the China Red “gold content” free trade area.
After 8 years of negotiations, despite the twists and turns of India’s withdrawal from the negotiations during the Bangkok meeting in Thailand last year, the final conclusion of all textual negotiations and the signing of the agreement means that soon It will form the largest free trade zone in the world. China will not only become RECP’s biggest beneficiary with its huge manufacturing capacity and consumer market, if RECP is successfully implemented, the Asia-Pacific region will become the center of global economic development in the future.
The signing of the RCEP provoked many reactions, first of all over the absence of India. In fact, ASEAN leaders told Indian Prime Minister Narendra Modi on November 12 that RCEP still “had an open door” for India. On the 14th, Japanese Prime Minister Yoshihide Suga also declared that he hopes to expand “free and fair economic groups” through the participation of India in the future. Singapore Prime Minister Lee Hsien Loong and Malaysia Prime Minister Muhyiddin Yassin welcomed India to join RCEP in the future. The Straits Times quoted James Crabtree, associate professor at the Lee Kuan Yew School of Public Policy, as saying on November 15 that India’s decision not to join RCEP is also a problem for India itself. “Historical error”.
On the other hand, Australia emphasized the impact of the RCEP on China-Australia relations. Australian Trade, Tourism and Investment Minister Simon Birmingham (Simon Birmingham) said he hopes the RCEP will help improve the current tense relations between China and Australia.
The United States, the world’s largest economy, is not included in the RCEP. The New York Times reported on November 15 that “the signing of the trade agreement led by China poses a challenge to the United States. The Financial Times believes the United States is in the position. After exiting the Trans-Pacific Partnership (TPP) under the leadership of the general public, it stood aside from TPP and RCEP. “This means that when Asia sets its own trade rules, the EU and the United States, the world’s two traditional trading superpowers, have no voice.”
Singapore’s “Lianhe Zaobao” is concerned that after the agreement is signed, all countries must complete their own approval procedures within two years before the RCEP officially takes effect. Import taxes between participating countries are estimated to be phased out over 20 years, thus improving regional goods and services. market
