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During the ongoing and partially virtual ASEAN summit in the Vietnamese capital Hanoi, the ten members and five other countries agreed on the final details of the free trade agreement, which has already been signed.
China, Japan, South Korea, Australia and New Zealand, as well as the ten ASEAN countries, have agreed to reduce or eliminate tariffs in a large number of trade sectors.
Together they stand 15 countries for 30 percent of the world economy, an equal proportion of the world population and the agreement is opened for the countries to reach 2,200 million potential consumers.
The United States does not participate in the free trade agreement, which is a direct competitor to the Pacific TPP Agreement, for which former US President Barack Obama worked but from which Donald Trump removed the United States.
The TPP was seen by Obama as a way to reduce China’s dominance in the region. China, for its part, has been working since 2012 to make the RCEP a reality. India withdrew from cooperation last year, but several ASEAN countries say the door is open for the great country to join.
According to Indonesian Commerce Minister Agus Suparmanto, the RCEP will enter into force once the countries have ratified the agreement, which is expected to take up to two years.
