On 15th November 2020, the Association of Southeast Asian Nations (ASEAN) – Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Viet Nam – together with Australia, China, Japan, the Repubblic of Korea and New Zealand signed the RCEP Agreement.
Acknowledged as critical for the signatory Countries’ response to the COVID-19 pandemic, the RCEP Agreement is an unprecedented trading arrangement that comprises a diverse mix of developed, developing and least developed economies of the region. It covers a market of almost 30% of the world’s population with a combined GDP of US$ 26.2 trillion, about 30% of global GDP.
The objective of the RCEP Agreement is to establish a mutually beneficial economic partnership that will facilitate the expansion of regional trade and investment. With its comprehensive coverage area, it provides a framework aimed at lowering trade barriers in the region as well as promoting development cooperation across signatory States.
Altough the RCEP Agreement is coming into effect at a time of global economic uncertainty, it could give a potential boost to foreing direct investment flows, of which RCEP is already a major destination. In this regard, policy priorities in the coming years will likely include a sustainable post-covid recovery, through investments in infrastructure, healthcare and clean energy, and a promotion of investment in the least developed RCEP countries.
The agreement remains open for accession by new countries and reserves a special accession procedure to India, which, after having participated in the negotiations from their beginning in 2013, has eventually withdrawn.
More information at the RCEP official website
You can find the text of the agreement here
