RCEP: High hopes, disappointing start
The bloc’s initial performance has been underwhelming, possibly due to its pandemic-era launch and rising geopolitical tensions
ON AUG 2, Hong Kong’s chief executive John Lee announced that Laos, Cambodia and Vietnam had pledged their support for Hong Kong’s bid for “early accession” to the Regional Comprehensive Economic Partnership (RCEP). As Hong Kong, along with other regional players, flock to join what has been dubbed a “game-changer” for regional trade, uncertainty lingers over whether RCEP can truly live up to the growing expectations.
RCEP was expected to revolutionise trade across the Asia-Pacific, promising to unify a fragmented landscape of trade agreements into the largest trade bloc in history. Representing 30 per cent of the world’s population and global GDP, the trade pact aimed to simplify and enhance regional trade dynamics.
Before RCEP, Asean had established a complex network of “Asean +1” free trade agreements (FTA) with the other RCEP members. RCEP, led by Asean, consolidates this intricate net of agreements and fills the gap in bilateral FTAs between Japan and the two other significant economies in North-east Asia, China and South Korea. With more applicants lining up, RCEP’s potential is unprecedented.
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