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China and 14 other countries in Asia and the Pacific signed the world’s largest trade deal to date on Sunday, omitting the United States. The agreement (Regional Comprehensive Economic Association, RCEP, which could be translated as Regional Comprehensive Economic Cooperation) further increases China’s political and economic influence in the region. By signing the agreement, the signatory countries will cover a market of 2.2 billion people and $ 26.2 trillion in world trade, or 30 percent of the world’s population and economy.
The deal is bigger than any trade pact to date, and it is also unique in that, despite its size, the United States has been left out of it.
Analysts interviewed by CNBC say the benefits of the deal are modest and would take years to materialize.
The RCEP’s diplomatic message is at least as important as the economic one.
Cover image: AFP Photographer: Nhac Nguyen
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