A total of 15 countries, including ASEAN member countries and China, have virtually signed on 15 November 2020 to form the Regional Comprehensive Economic Partnership (RCEP), the world’s largest trade agreement. About one-third of the world’s economic activities will come under its purview.
This agreement is being seen as a big gamechanger for China. Many Asian countries are hopeful that this agreement will help in the rapid recovery from the economic impact of the coronavirus epidemic. Through this regional partnership, China’s effort is to increase its dominance in Asian markets and trade.
According to experts, the Regional Comprehensive Economic Partnership (RCEP) – comprising ten Southeast Asian economies with China, Japan, South Korea, New Zealand and Australia. It is the largest trade agreement in the world in terms of GDP. The Prime Minister of Vietnam chaired the Fourth Regional Comprehensive Economic Partnership Summit.
First proposed in 2012, the deal was finally ratified at the end of the South-East Asian Summit (ASEAN Conference) as leaders of member states consider it effective to bring back the epidemic-hit economies.
The discussion on this partnership with the ten countries of the ASEAN Group began in 2012. These include countries like China, Japan, South Korea, Australia and New Zealand. India was also supposed to sign the Regional Comprehensive Economic Partnership (RCEP), but had dissociated itself from the partnership last year. RCEP also aims to reduce the cost and time of companies.
