Introduction to the Regional Comprehensive Economic Partnership (RCEP)
Hong Kong, Sri Lanka, Chile, and Bangladesh are aspiring to join the Regional Comprehensive Economic Partnership (RCEP), a trade bloc backed by China, the world’s largest trading entity. This information was shared by representatives from Southeast Asia on Thursday.
Current RCEP Members
The RCEP currently comprises China, Japan, South Korea, Australia, New Zealand, and the ten members of the Association of Southeast Asian Nations (ASEAN).
RCEP’s Openness to New Members
According to RCEP officials, who met on the sidelines of an ASEAN ministerial meeting for trade and economy in Malaysia, there are few objections to accepting new applicants. They aim to incorporate the four economies into the trade bloc.
“Of course, we support all countries that want to join the RCEP,” said Indonesia’s Deputy Trade Minister, Dyah Roro Esti Widya Putri, in Kuala Lumpur.
Malaysia’s Trade Minister, Tengku Zafrul Aziz, stated that any decision regarding new RCEP members will be discussed when the bloc’s leaders meet for the first time in five years in October.
Previously, Tengku Zafrul mentioned that the RCEP aims to enhance a trade agreement signed in 2020 during the October summit.
Potential Impact of RCEP
Some analysts have described the RCEP as a potential buffer against tariffs imposed by the United States. However, its provisions are considered weaker than some other regional trade agreements due to conflicting interests among its members.
Key Questions and Answers
- What is the Regional Comprehensive Economic Partnership (RCEP)? The RCEP is a proposed free trade agreement between 15 Asia-Pacific countries, including China, Japan, South Korea, Australia, New Zealand, and the ten ASEAN member states.
- Which countries are seeking RCEP membership? Hong Kong, Sri Lanka, Chile, and Bangladesh are aspiring to join the RCEP.
- Who are the current members of the RCEP? The RCEP currently consists of China, Japan, South Korea, Australia, New Zealand, and the ten ASEAN member states.
- When will new members be discussed? The RCEP leaders will discuss potential new members when they meet in October for the first time in five years.
- What is the significance of RCEP? Analysts view the RCEP as a potential counterbalance to tariffs imposed by the United States, though its provisions are considered less robust than some other regional trade agreements due to differing member interests.
