. Earth Science News .
TRADE WARS
World's largest free trade agreement signed in coup for China
By Alice Philipson, with Martin Abbugao in Singapore
Hanoi (AFP) Nov 15, 2020

Fifteen Asia-Pacific countries on Sunday signed the world's biggest free trade deal, seen as a huge coup for China in extending its influence.

The Regional Comprehensive Economic Partnership (RCEP) includes 10 Southeast Asian economies along with China, Japan, South Korea, New Zealand and Australia, with members accounting for around 30 percent of global GDP.

First proposed in 2012, the deal was finally sealed at the end of a Southeast Asian summit as leaders push to get their pandemic-hit economies back on track.

"Under the current global circumstances, the fact the RCEP has been signed after eight years of negotiations brings a ray of light and hope amid the clouds," said Chinese Premier Li Keqiang after the virtual signing.

"It clearly shows that multilateralism is the right way, and represents the right direction of the global economy and humanity's progress."

The agreement to lower tariffs and open up the services trade within the bloc does not include the United States and is viewed as a Chinese-led alternative to a now-defunct Washington trade initiative.

The 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 signature investment project that envisions Chinese infrastructure and influence spanning the globe.

"It's sort of a complementary element."

But many of the signatories are battling severe coronavirus outbreaks and they are also hoping the RCEP will help mitigate the crippling economic cost of the illness.

Indonesia recently tumbled into its first recession for two decades while the Philippine economy shrunk by 11.5 percent on-year in the latest quarter.

"Covid has reminded the region of why trade matters and governments are more eager than ever to have positive economic growth," said Deborah Elms, executive director of the Asian Trade Centre, a Singapore-based consultancy.

- India absent -

India pulled out of the agreement last year over concerns about cheap Chinese goods entering the country and was a notable absentee during Sunday's virtual signing.

It can join at a later date if it chooses.

Even without India, the deal covers more than two billion people.

Crucially, it should help shrink costs and make life easier for companies by letting them export products anywhere within the bloc without meeting separate requirements for each country.

The agreement touches on intellectual property, but environmental protections and labour rights are not part of the pact.

The deal is also seen as a way for China to draft the rules of trade in the region, after years of US retreat under President Donald Trump which have seen Washington pull out of a trade pact of its own, the Trans-Pacific Partnership (TPP).

Though US multinationals will be able to benefit from RCEP through subsidiaries within member countries, analysts said the deal may cause President-elect Joe Biden to rethink Washington's engagement in the region.

This could see the US eye the potential benefits of joining the TPP's successor deal, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), said Rajiv Biswas, APAC chief economist at IHS Markit.

"However, this is not expected to be an immediate priority issue... given the considerable negative response to the TPP negotiations from many segments of the US electorate due to concerns about US job losses to Asian countries," he added.

What is the RCEP trade deal?
Hanoi (AFP) Nov 15, 2020 - Backed by China, the sprawling Regional Comprehensive Economic Partnership (RCEP) is seen as a coup for Beijing in extending its influence across the region and marks its dominance in Asian trade.

After eight years of wrangling over the details, the trade pact -- the world's largest in terms of GDP, say analysts -- will be signed on Sunday.

- What is RCEP? -

Launched in 2012, RCEP is a trade pact between the 10-member ASEAN bloc, along with China, Japan, South Korea, Australia and New Zealand. India had been due to sign but pulled out last year.

The deal includes 2.1 billion people, with RCEP's members accounting for around 30 percent of global GDP.

Its aim is to lower tariffs, open up trade in services and promote investment to help emerging economies catch up with the rest of the world.

Specifically, RCEP is expected to help reduce costs and time for companies by allowing them to export a product anywhere within the bloc without meeting separate requirements for each country.

It also touches on intellectual property, but will not cover environmental protections and labour rights.

"A key priority area for further RCEP negotiations is likely to be e-commerce," said Rajiv Biswas, Asia Pacific chief economist at global business consultancy IHS Markit, after nations struggled to fully agree on some of the provisions on digital trade.

It is unclear when the pact will be ratified but it could come into force next year.

- Why does it matter? -

It mainly matters because it sets new trade rules for the region -- and has China's backing but does not include the United States.

Observers say it solidifies China's broader geopolitical ambitions in the region, where it has faced little competition from the US since President Donald Trump pulled out of a trade pact of its own.

That deal, called the Trans-Pacific Partnership (TPP), was on track to be the world's biggest trade pact, until Washington pulled the plug, saying it funnelled off US jobs.

However, observers say the RCEP is not as extensive as the TPP, or the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), as its successor is known.

It "is not a fully completed, fully rationalised agreement," said Alexander Capri, a trade expert at the National University of Singapore Business School.

"The problem with RCEP is that you have 15 incredibly diverse countries at different stages of development and with completely internal priorities," he added.

- Why no India? -

India withdrew last year over concerns about cheap Chinese goods entering the country, though it can join at a later date if it chooses.

It raised alarm about market access issues, fearing its domestic producers could be hard hit if the country was flooded with cheap Chinese goods.

Textiles, dairy, and agriculture were flagged as three vulnerable industries.

Prime Minister Narendra Modi faced mounting pressures at home to take a tougher stance on the terms, and proved unbending as the RCEP negotiations came to a close.

- What does it mean for the US? -

It is likely that a new US administration under President-elect Joe Biden will focus more on Southeast Asia, analysts say, although it remains unclear whether he would want to rejoin the CPTPP.

The topic remains a politically sensitive issue in the US.

"The administration will be looking at this very closely," said Capri.


Related Links
Global Trade News


Thanks for being here;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor
$5 Billed Once


credit card or paypal
SpaceDaily Monthly Supporter
$5 Billed Monthly


paypal only


TRADE WARS
China confirms ban on some Australian timber imports
Beijing (AFP) Nov 12, 2020
China said Thursday that it has suspended some timber imports from Australia, as tensions soar between the two countries on a range of issues including trade, human rights and the coronavirus. Beijing - Australia's biggest trade partner - has threatened economic blowback since Canberra called for an inquiry into the Covid-19 pandemic, and has already suspended beef imports and launched a probe into the alleged dumping of Australian wines. On Thursday, the foreign ministry confirmed customs off ... read more

Comment using your Disqus, Facebook, Google or Twitter login.



Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

TRADE WARS
Winter rains in Beirut finish off blast-ravaged homes

Delhi battling dual crises of pollution and coronavirus

Turkey ends quake rescue mission

'Miracle' girl rescued 91 hours after Turkey quake

TRADE WARS
New PlayStation hits market as console battle with Xbox begins

Smaller than ever - exploring the unusual properties of quantum-sized materials

Smart concrete could pave the way for high-tech, cost-effective roads

Earth may have recaptured a 1960s-era rocket booster

TRADE WARS
Mining rocks in orbit could aid deep space exploration

Methods developed by biorobotics engineers help make hydropower plants more fish-friendly

In a warming world, Cape Town's 'Day Zero' drought won't be an anomaly

Changing Pacific Conditions Raise Sea Level Along U.S. West Coast

TRADE WARS
Atmospheric rivers help create massive holes in Antarctic sea ice

Scientists have discovered an ancient lake bed deep beneath the Greenland ice

Mystery of glacial lake floods solved

The Anatomy of Glacial Ice Loss

TRADE WARS
CAST releases paper on "Ground and Aerial Robots for Agricultural Production: Opportunities and Challenges"

'Plantdemic' hits Philippines as demand for greenery grows

Food emissions could push Earth past global warming limits

Ecologically friendly agriculture doesn't compromise crop yields

TRADE WARS
Thousands flee as Typhoon Vamco nears Vietnam

Hard-hit Central America in crosshairs of another hurricane

Warmer seas keep hurricanes stronger for longer, study says

Thousands flee as yet another typhoon menaces Philippines

TRADE WARS
China to curb emerging economy financing: Euler Hermes

Ethiopian warplanes bombard Tigray as Abiy denies 'chaos'

Ethiopia vows to replace Tigray government as conflict escalates

France said to plan cuts in Sahel force

TRADE WARS
Does the human brain resemble the Universe

Newly discovered fossil shows small-scale evolutionary changes in an extinct human species

Newly discovered primate in Myanmar 'already facing extinction'

New male leaders cause female gelada primates to more quickly mature









The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us.