The RCEP: An Aid To Globalization

Leaders from 15 of the 16 participating countries issued a joint declaration at the Third Regional Comprehensive Economic Partnership (RCEP) Summit, which stated that they have concluded talks on all 20 chapters of the RCEP Agreement and all market access commitments on goods, services and investment. Negotiating teams have already kicked off text reviews, with the aim to sign the agreement in 2020, by which time, a free trade zone covering about one third of the world’s population, about one third of the global GDP and the world’s largest area will come into being.

RCEP negotiations were launched by the 10 ASEAN countries in 2012, along with Australia, China, India, Japan, the Republic of Korea and New Zealand, in a bid to establish a comprehensive, high-quality and mutually beneficial large-scale free trade zone based on a unified market of the 16 countries through the reduction of tariffs and non-tariff barriers.

The issuing of the joint declaration signals the conclusion of the negotiations among 15 member countries (India still has some major questions on negotiations), which is a great breakthrough in the establishment of the world’s most structurally diversified free trade zone, with huge development potential.

The RCEP is a potent plan to safeguard economic globalization. Since the United States began to wield the stick of tariffs and turned to trade protectionism, waves of anti-globalization are surging around the world, impacting global free trade. However, the international community’s determination and confidence to safeguard free trade is strengthening instead of wavering, with RCEP negotiations a typical example.

The parties have done a tremendous amount of work and overcome various difficulties in the process of negotiations. In the past year, particularly, the process has accelerated, with members showing strong political will. During the third summit, leaders hailed the breakthrough in RCEP negotiations, hoping that their conclusion in the current situation will help to send a positive message of collective will to build an open world economy, shore up the multilateral trade mechanism, improve the regional trade and investment environment, and make trade and investment more convenient and freer to help member countries better cope with challenges and strengthen the potential of future regional development.

China has always played a proactive and constructive role in RCEP negotiations, while the ASEAN countries played a central role in the negotiations. Against the complex backdrop of anti-globalization, China has always been a strong backstop for the central role of ASEAN in the negotiations, which finally borne fruit despite diversity in politics, economy, development levels, as well as

After the signing of the agreement

in 2020, the Chinese market will provide more opportunities

to RCEP countries, along with investors and businesses from outside the region, helping to bolster global economic growth