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China and 14 other countries in Asia and the Pacific they just signed the biggest Free trade agreement in the world. The deal represents 30% of global GDP and will help affected economies recover from the coronavirus crisis.
The firm reaches the end of the US elections whose commercial results, despite Biden’s victory, are not yet known. In fact, several experts believe that the path paved by Trump will change more in form than content.
RCEP is born, the largest free trade agreement in the world
As the US emerges from the turbulent presidential election on November 3 and still struggles with the coronavirus pandemic, a new trade bloc is forming. over which China can extend its influence.
The agreement is called the Regional Integral Economic Association (RCEP). It had been proposed for the first time in 2012, but the final push to find the place came in the year of the pandemic that put the economies of the area in serious difficulties.
RCEP brings together the 10 members of the Association of Southeast Asian Nations (ASEAN), plus China, Japan, South Korea, Australia, and New Zealand. The objective is mainly to lower or in some cases even eliminate tariffs, some immediately, others over 10 years.
Decided not to sign instead India, which during the summer had skirmishes with China and was afraid to see its trade deficit with the Asian giant increase. However, you could also join at a later date.
The ceremony, which given the times was totally virtual, saw the finance ministers of the RCEP countries sign and then triumphantly show the document to the cameras. The deal just waits now ratification by the different states to be effective.
This is the first time that the Asian powers of China, Japan and South Korea have signed a free trade agreement.
