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SINGAPORE: Fifteen countries in Asia and the Pacific signed a mega free trade agreement on Sunday (November 15) at the conclusion of an annual summit of leaders from Southeast Asia and their regional partners, held practically this year due to the COVID-19 pandemic. .
The Regional Comprehensive Economic Association (RCEP) is the largest trade agreement in the world. It will progressively reduce rates in many areas in the coming years.
The pact, which was first proposed in 2012, applies to 10 ASEAN economies along with China, Japan, South Korea, New Zealand and Australia.
They make up almost a third of the world’s population and account for 29% of the world’s gross domestic product.
READ: What is the RCEP trade agreement?
“After eight years of negotiating with blood, sweat and tears, we finally reached the point where we will seal the RCEP Agreement this Sunday,” Malaysian Trade Minister Mohamed Azmin Ali said before the summit.
Prime Minister Lee Hsien Loong, who led the Singapore delegation, hailed the signing of the RCEP on Sunday as a “great milestone” and congratulated the 15 participating countries.
“We have reached an important milestone with the signing of this agreement today. It has taken us eight years, 46 negotiating meetings and 19 ministerial meetings to get here. I am very grateful for the tireless efforts of the ministers and negotiators of all participating countries who have worked so hard during the process.
“The RCEP is a huge step forward for the world, at a time when multilateralism is losing ground and global growth is slowing,” said Mr. Lee.
Now, he added, “begins the hard work of implementing the agreement and encouraging our companies to make the most of it.”
“We have all made difficult concessions to move the negotiations forward. And we will have to work hard to persuade our citizens that the RCEP will benefit them,” said Mr. Lee.
“But I have no doubt that RCEP is an advantage for all of us and will help stem the tide against globalization and economic integration.
“Singapore looks forward to working with participating countries in the timely implementation of this momentous agreement,” the prime minister added.
LEE: Prime Minister Lee says Singapore will contribute US $ 100,000 to ASEAN’s COVID-19 fund and praises the signing of the RCEP as a ‘great achievement’
The 15 RCEP countries agreed on the terms of the agreement last year, paving the way for its signature during the summit.
India withdrew from the talks last year, concerned that the removal of tariffs would open its markets to a flood of imports that could hurt local producers. Other countries have said the door remains open for New Delhi.
After signing, all countries would have to ratify the RCEP within two years before it goes into effect.
The four-day ASEAN summit included meetings between Southeast Asian leaders and their counterparts from China, Japan and South Korea at the ASEAN Plus Three Summit, as well as the East Asia Summit and the RCEP Summit.
