Largest Free Trade Agreement In The World

The RECP will also facilitate non-tariff measures, including harmonizing trade rules and standards that will facilitate cross-border trade within the region, Ali said. However, it sets rules for trade that facilitate investment and other business in the area, said Jeffrey Wilson, research director at the Perth USAsia Center. Some experts believe that the treaty will help activate the economy in the wake of the pandemic and facilitate trade in the region by opening markets between countries. However, some non-governmental organizations have criticized the RCEP`s prioritization of the interests of multinationals and does not protect small producers, particularly in the agricultural sector. «The entire RCEP negotiation process is an insult to democracy,» Sara Elago, a Filipino MP and member of the ASEAN human rights (APHR) parliamentarians, said in a statement. Australia hopes the trade deal will improve relations with China, its largest trading partner. Read more: APEC Summit: Free Trade in Asia in the Age of Protectionism The RCEP, which lasted eight years, was previously to include India. However, India withdrew from negotiations last year due to doubts about the impact of the agreement on its agricultural sector. Despite India`s withdrawal, the joint declaration of the signatories stated that it was good to conclude the RCEP agreement. India withdrew from the agreement last year because of concerns about cheap Chinese products that entered the country and was a notable absentee at Sunday`s virtual signing. The RCEP has been hailed by regional leaders and some economists as a tool to boost trade and boost the region`s economy in the middle of COVID-19. However, some NGOs have criticized the lack of transparency and the fact that it is supposed to benefit large companies more than small producers, particularly in the agricultural sector. These are the key keys to this huge trade agreement: the RCEP is the first multilateral free trade agreement between China, Japan and South Korea – regional leaders – that have often clashed over trade and investment.

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