Asean and Asia-Pacific nations trade pact talks to end soon

SINGAPORE: Talks on a major trade pact between Asean and six Asia-Pacific countries have reached a critical stage and could be “substantively concluded” soon, Prime Minister Lee Hsien Loong said.

Asean member states have been pushing for the trade deal, the Regional Comprehensive Economic Partnership (RCEP), to be inked by the end of this year.

It would create the world’s largest trading bloc, covering a third of global gross domestic product.

Aside from the 10 Asean member states, the signatories are China, India, Australia, Japan, South Korea and New Zealand.

In opening remarks at the 50th Asean Economic Ministers’ Meeting yesterday, Lee noted that Asean has “exerted significant effort” to make progress on the RCEP.

The four-day meeting at the Shangri-La Hotel ends on Saturday.

“The RCEP negotiations have continued for some time, and have now reached a critical stage. After a great deal of work, the possibility of substantively concluding the RCEP negotiations is finally in sight,” Lee said.

“I encourage RCEP countries to take a long-term view, keep up the momentum, engage constructively and with maximum flexibility, so that we can deliver a high quality RCEP Agreement this year.”

Given the diversity of RCEP’s members, “we all have to make trade-offs and compromises”, Lee said.

He added: “But we should weigh these against the significant strategic and economic value of the RCEP.”

The inking of the trade pact comes amid growing trade tensions between the United States and its major trading partners such as Canada, the European Union and China, making it all the more important that Asean strengthens its economic cooperation and integration, Lee said.

“The rules-based multilateral trading system, which has underpinned Asean’s growth and prosperity, is under pressure,” he said. — The Straits Times/Asia News Network