World`s Largest Free Trade Agreement

The deal excludes the United States, which withdrew from a rival Asia-Pacific trade pact in 2017. RCEP “solidifies China`s broader regional geopolitical ambitions around the Belt and Road Initiative,” said Alexander Capri, a trade expert at the National University of Singapore Business School, referring to Beijing`s flagship investment project, which envisions China`s infrastructure and influence around the world. In particular, the trade agreement is likely to create incentives for the use of textiles from member suppliers such as Japan, South Korea and China to the detriment of textile exports from the EU or the US. According to estimates published in 2018, RCEP members` textile imports from the US and the EU will increase from 9.4% to 6.5% after the implementation of the agreement. In the longer term, Mr. Li described the deal as “a victory for multilateralism and free trade.” One of the sticking points in the economic relations of the world`s two largest economies is the protection of intellectual property rights in China – U.S. companies often accuse their Chinese counterparts of stealing their technology. When it enters into force – probably in 2021 – the RCEP agreement will bring several benefits to Australian exporters. The dispute escalated into a trade dispute that hit a dozen Australian industries and threatened to export billions of dollars of agricultural products, timber and resources to China. Signatories to the deal said they hoped New Delhi would return in the future and acknowledged its “strategic importance” to the deal, which already includes more than two billion people.

Australia has signed the historic Regional Comprehensive Economic Partnership (RCEP) trade agreement. China is the main signatory of the Regional Comprehensive Economic Partnership (RCEP), the world`s largest free trade agreement, which was signed on Sunday by conference call after eight years of negotiations between 15 countries in the Asia-Pacific region. The agreement, signed virtually in the wake of the COVID-19 pandemic, accounts for nearly a third of the global economy with a combined GDP of around $26.2 trillion (€22.14 trillion) in the world`s fastest-growing region. Representatives of the RCEP signatories met for the first time in November 2012 to negotiate the RECP. Initially, India was also part of these negotiations, but it indicated in late 2019 that it had a number of issues that prevented it from joining the agreement. .

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