Regional Comprehensive Economic Partnership (Rcep) Free Trade Agreement

Regional Comprehensive Economic Partnership (Rcep) Free Trade Agreement

Fearing that China would be ready to draft trade rules for Asia in the 21st century, U.S. President Barack Obama led the creation of the rival Trans-Pacific Partnership (TPP), which was itself a huge trade agreement and even larger than the RCEP. Originally, the TPP included 12 nations from Asia-Pacific and America, but not Auschina. However, US President Donald Trump withdrew from the TPP shortly after taking office in early 2017. In November 2019, the 15 members who continue to commit to the RCEP agreed to sign the agreement at some point in 2020. India could join later. The United States, which has not been deliberately excluded from the RCEP, could in theory join if it first concluded a trade agreement with Asean. The start of the RCEP negotiations took place with great fanfare, given the overlap between the two agreements and the economic heavyweights that were in one process, but not in the other. The United States was then in the TPP, while China and India were the founding members of the RCEP. Australia, Japan and New Zealand participated, as did some of the ASEAN member states. None of the South American countries that participated in the TPP were part of the RCEP.

While within the EU we are still studying its 20 chapters, 510 pages and annexes, their obvious achievements are clearer than in the depth of their reports: 30% of the world`s population and GDP, 28% of world trade and five members of the G20. A great advantage will be the harmonization of the rules of origin, which will also help European companies in the region, which will make it easier for companies to ship products to the region without establishing different criteria of origin for each stage of the manufacturing process or in each country that has been crossed. This will reduce costs for all businesses with supply chains that span the entire region. The agreement is also making progress on intellectual property rights. At the same time, it appears that workers` rights and environmental standards that are part of the EU`s FREI trade agreements are lacking in this agreement. In all of this, let us remember that we are not closed camps: we act both within and between ourselves and we have many challenges. That is why the EU must strive to work with its Asian and American partners to write the rules of the 21st century in an open and collaborative way. The RCEP countries have agreed to conclude a modern, comprehensive, quality and mutually beneficial agreement. The Heads of State and Government endorsed these guiding principles and objectives (“guiding principles”) for the RCEP negotiations when they were launched. More than 30 rounds of negotiations in eight years, numerous ministerial meetings and three summits of heads of state and government have made significant progress and, as Asian leaders said on Sunday, “an unprecedented regional trade agreement, which includes a diverse mix of developed, developing and least developed economies in the region.” In 2016, the Electronic Frontier Foundation described the first draft of RCEP`s intellectual property provisions as “simply the worst copyright provisions ever seen in a trade agreement.” [71] Many Member States already have free trade agreements (FTAs), but there are restrictions.