- Negotiations for a comprehensive economic cooperation agreement began eight years ago.
- The agreement will practically lead to the creation of a large umbrella of economic cooperation.
- The pact covers the vast markets of these 15 countries.
China and 14 countries in Asia and the Pacific have signed the world’s largest trade agreement. A treaty that declares war on Europe and the United States. It is the world’s largest free trade agreement, accounting for one-third of the world’s gross domestic product.
Sunday, November 15 (November 25) can be considered a historic day. This morning, China and 14 Asia-Pacific nations signed the text of a free trade agreement.
Despite the China-US trade war, the world’s largest free trade agreement was signed at the end of a virtual meeting of leaders of the Association of Southeast Asian Nations (ASEAN).
Negotiations for a comprehensive economic cooperation agreement began eight years ago. The signing of the agreement on Sunday, November 15 in Hanoi, the capital of Vietnam, will practically lead to the creation of a large umbrella of economic cooperation.
“I am delighted to say that after eight years of hard work, as of today, we have officially brought RCEP negotiations to a conclusion for signing,” said host country Vietnam’s prime minister, Nguyen Xuan Phuc.
“The conclusion of RCEP negotiation, the largest free trade agreement in the world, will send a strong message that affirms ASEAN’s leading role in supporting the multilateral trading system, creating a new trading structure in the region, enabling sustainable trade facilitation, revitalizing the supply chains disrupted by COVID-19 and assisting the post-pandemic recovery,” Phuc said.
The pact covers the vast markets of these 15 countries. The pact covers about one-third of the world’s gross domestic product and covers about 2.2 billion people on Earth.
Under the agreement, customs duties on trade between the signatory countries will be reduced, rules governing joint trade will be established and the ground for the transport of goods will be facilitated.
In addition, it can be said that the world’s largest free trade agreement will include trade, services, investment, digital commerce, and communications.
In addition to China and ten ASEAN member states, Japan, Australia, South Korea, and New Zealand are also involved in this free trade. The ten ASEAN member states are Vietnam, Singapore, Indonesia, Malaysia, Thailand, the Philippines, Myanmar, Brunei, Laos, and Cambodia.
The Volume of Trade ExchangesThe pact covers the vast markets of these 15 countries.
The volume of trade of the mentioned free trade agreement will be about 29% of the total world trade. Thus, the volume of trade in this treaty is slightly lower than the volume of trade in the European Union. The EU accounts for 33% of world trade.
“The signing of the RCEP is not only a landmark achievement of East Asian regional cooperation, but also a victory of multilateralism and free trade,” Premier Li Keqiang said.
The agreement to create the world’s largest free trade is being hailed as a major success for China.
The US government’s trade policy and trade dispute with China and some Asia-Pacific countries are said to have facilitated and accelerated the process of reaching an agreement on the treaty.
This trade agreement has been the product of 31 rounds of negotiations at 18 ministerial conferences. The withdrawal of India from the negotiating table late last year has paved the way for an agreement.