Leaders of 10 ASEAN members and 6 key trading partners promised to seal a pact to create the world’s largest free trade zone next yr, reports The Straits Times Regional Comprehensive Economic Partnership (RCEP).
“The task of concluding negotiations on RCEP is becoming increasingly urgent and significant given the current difficulties facing the global economy,” they said in an announcement issued after the RCEP summit meeting.
“We have made a collective commitment to quickly complete RCEP… to support an open, inclusive and rules-based trading system and to show the world that it is possible to ensure the benefits of trade for all.”
Prime Minister Lee Hsien Loong, who hosted the summit, said he was encouraged by the strong political will shown and significant progress in negotiations.
This yr, five more chapters of the pact were concluded, bringing the whole to seven. There were also “significant breakthroughs” in negotiations on trade rules.
Discussions on market access have also made significant progress, bringing the deal closer to completion next yr. “We are currently in the ultimate stage of negotiations,” he said.
“Given the strong momentum generated this year, I am pleased to note that the RCEP negotiations will be concluded in 2019.”
In his remarks to fellow leaders, Prime Minister Lee noted that negotiations took “for much longer than usual” attributable to the unique challenges of negotiating a mega free trade agreement (FTA).
“Complications are expected because we’re a gaggle with diverse economies. For a lot of us, this will likely be our first free trade agreement. However, once it’s concluded, the advantages will likely be equally significant,” he said.
“The significant result of RCEP will reassure companies that our region remains committed to building a climate favorable to entrepreneurship and investors,” he added.
RCEP accounts for 45 percent of the world’s population, 40 percent of world trade, and one-third of the world’s economy. Negotiations began in 2013 and were initially expected to be accomplished by 2015, but this date was postponed several times, including to this yr.
Prime Minister Lee noted that talks are actually of their sixth yr and urged other leaders to persist, saying: “An extra extension of negotiations puts RCEP liable to losing credibility and support from our stakeholders and can mean missing a serious opportunity to deliver tangible advantages for our businesses and residents.”
Source : Times of the Strait
