The United States is not present at the RCEP and the 11-nation Trans-Pacific Partnership (TPP) agreement, which U.S. President Donald Trump resigned shortly after taking office. Thus, the world`s largest economy remains made up of two trade groups that make up the fastest growing region of the world. Ten ASEAN countries and five other Asia-Pacific countries have signed the world`s largest trade agreement on GDP. The pact is expected to boost economic growth in a region hit hard by the coronavirus pandemic. This new analysis proposes to examine two key areas, including port facilities and competitiveness in Internet services. According to the report, reforms in these areas could increase ASEAN trade by 7.5% ($22 billion) and 5.7% ($17 billion). On the other hand, a reduction in tariffs on all ASEAN members on the South-East Asia regional average would increase intra-regional trade by about 2% ($6.3 billion).  Read more: The real winners of the U.S.-China trade dispute « The economic benefits of the agreement may be marginal for Southeast Asia, but there are some interesting trade and customs dynamics for Southeast Asia, » said Nick Marro of the Economist Intelligence Unit (IEUE). Now that Trump`s opponent, Joe Biden, has been declared president-elect, the region is watching developments in U.S. trade policy and other issues.
The agreement is expected to help China, Japan and South Korea finally reach a trilateral free trade agreement after years of struggle to overcome their differences. It is not expected to go all the way to the European Union for the integration of Member States, but to build on existing free trade agreements. This photo, taken from a conference call by the Vietnam News Agency (VNA), shows heads of state and government and trade ministers from 15 countries of the Global Regional Economic Partnership (RCEP) posing for a virtual group photo in Hanoi on November 15, 2020. « It really doesn`t offer any kind of disciplines or constraints that would change China`s business model, » says Chad Bown, business economist at the Peterson Institute for International Economics. Southeast Asian heads of state and government met in Bangkok for a three-day, trade-dominated summit. ASEAN members are working to finalize a China-backed plan for the creation of the world`s largest free trade area. The RCEP will also accelerate the economic integration of Innordostasia. A Japanese Foreign Ministry spokesman said last year that negotiations on the trilateral free trade agreement between China and South Korea and Japan, which have been stalled for many years, will begin « as soon as they are able to conclude the RCEP negotiations. » As I said, in a high-level speech in early November, President Xi Jinping promised to « accelerate negotiations on an investment agreement between China and the EU and a free trade agreement between China and Japan and the United States. » China, meanwhile, applauded rcep as a victory.