15 Asia Pacific Nations Sign RCEP
On 15 November 2020, 15 Asia Pacific nations signed the Regional Comprehensive Economic Partnership (RCEP) at a regional summit in Hanoi. Backed by China, the signing of RCEP marked the forming of the world’s largest free trade bloc and the beginning of a new era where Asian countries will play a more active role in international trade. With guidance from your econs tutor Singapore in econs tuition Singapore, discuss the significance of the signing of RCEP.
8 Years And 31 Rounds Of Negotiations
It took the 15 nations eight years and 31 rounds of negotiations to finally reach an agreement, reflecting substantial efforts to align the interest of a diverse group of countries. The landmark RCEP brought together 10 ASEAN countries such as Singapore and Malaysia, as well as China, Japan, South Korea, Australia and New Zealand. Together, they represent a significant stake in the world economy with 30 per cent of the global GDP, 30 per cent of the global population and a combined consumer base of 2.2 billion. In consultation with your econs tutor Singapore in your econs tuition Singapore class, compare RCEP with the Trans-Pacific Partnership (TPP) of which President Donald Trump pulled the US out in 2017.
India dropped out of the RCEP negotiations in November 2019, citing concerns over lower tariffs which may hurt its local producers. Encouragingly, the RCEP partners said that the door remained open for India to join the RCEP in future. You may discuss with your econs tutor Singapore in econs tuition Singapore the pros and cons for India to join RCEP. You are advised to sign up for econs tuition Singapore with a reputable econs tutor Singapore should you need help with the subject of econs.
The Benefits Of RCEP
According a paper by the International Monetary Fund (IMF) in 2018, the regional GDP could grow by as much as 15 per cent should the trade barriers and restrictions to foreign direct investment within Asia be removed. You may approach Mr Edmund Quek, principal econs tutor Singapore of Economics Cafe Learning Centre, a premier econs tuition Singapore centre for the various benefits of free trade. Mr Quek is widely regarded as the best econs tutor Singapore. His econs tuition Singapore centre is conveniently located within five minutes’ walk from the Bishan MRT Station. Despite its various limitations, RCEP, which aims to progressively eliminate tariffs across various areas within RCEP group, is an important step forward in the right direction and will certainly help boost the post Covid-19 pandemic economic recovery in the Asia Pacific region. For the various limitations of RCEP, you may consult the econs tutor Singapore Mr Edmund Quek in his econs tuition Singapore class. RCEP will also boost the integration within the Asia Pacific region, bringing about closer collaboration and cooperation to strengthen its position in the global supply chain. Asian economies are emerging faster from the Covid-19 pandemic, less damaged as compared with the US and European countries who are still struggling with spiking Covid-19 cases.
Absent from both RCEP and TPP, the United States is out of the two major trade groups formed by nations of one of the fastest growing regions in the world. In contrast, the presence in RCEP will help China strengthen its leadership position in the Asia Pacific region and reduce its dependence on the US and European trade partners. With President-elect Joe Biden taking office in January 2021, the US is likely to rejoin TPP as Biden was a key member of the Obama administration that propelled the signing of TPP back in 2016.
Linda Geng
Economics Tuition Singapore @ Economics Cafe
Principal Economics Tutor: Mr. Edmund Quek