RCEP still far off as negotiators gather in South Korea

PETALING JAYA: Trade negotiators from 16 countries – 10 from Asean and six of the grouping’s dialogue partners – are in Incheon, South Korea, this week as doubts remain over whether the Regional Comprehensive Economic Partnership (RCEP) can conclude.

It will be the final round of negotiations this year for the free trade agreement (FTA), with many of the 20 chapters still being negotiated.

At their gathering in Manila last month, the trade ministers had hoped for significant breakthroughs at this negotiators’ meeting, but several officials remained sceptical.

“It has been challenging. The Incheon round will be the last for the year. We definitely can’t conclude,” said one senior official, who declined to be identified.

The Incheon round will be the 20th since the RCEP negotiations started in 2013.

The Aseanled FTA also involves China, India, Japan, South Korea, Australia and New Zealand.

The deadline to wrap up the negotiations has been postponed three times.

Negotiators are under pressure to conclude the RCEP – a priority deli verable as Asean celebrates its 50th anniversary and just weeks before Asean leaders hold their summit in Manila. The negotiators are now targeting to wrap up by June next year.

The trade ministers at their meeting in September expressed concern that some countries were reluctant to increase market access and remove trade rules that would realise the FTA’s huge potential.

“This has been going on for too long. We have to push for at least a substantial conclusion by May or June,” said another official, who also spoke on condition of anonymity.

The ministers have instructed the RCEP trade negotiating committee to prepare a paper detailing the achievements of the 20 chapters negotiated.

It is understood that each chapter will spell out the key issues that need to be resolved and whether substantial progress has been made.

A report will be sent to Asean leaders next month to ensure that the RCEP remains on track.

The conclusion of the RCEP will create the world’s largest trade bloc, comprising nearly onethird of the global economy.

Some countries are pushing for it after the collapse of the TransPacific Partnership Agreement (TPPA) following the withdrawal of the United States.

The RCEP covers trades in goods and services, including financial and telecommunications facilities, investments, economic and technical cooperation, intellectual property, ecommerce, competition and dispute settlement.

Unlike the TPPA, it does not include government procurement, labour and the environment.

The question now is if these 16 countries can narrow the gap, with only two out of the 20 FTA chapters having been concluded at this time.

These are economic and technical cooperation, and small and medium Enterprises.