The long-awaited Regional Comprehensive Economic Partnership (RCEP), covering nearly a third of the global population and about 30 percent of global GDP, was signed by its 15 members on Sunday at the fourth RCEP summit in Hanoi.
It is the world's biggest free trade agreement (FTA) measured in terms of GDP, larger than the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the European Union, the recent U.S.-Mexico-Canada Free Trade Agreement or Mercosur, according to Rajiv Biswas, chief economist for the Asia-Pacific region of IHS Markit.
The agreement will promote fewer tariffs on trade in goods, and better rules for trade in services, including market access provisions for service sector suppliers from other RCEP countries. Besides, non-tariff barriers to trade among its members, such as customs and quarantine procedures and technical standards will be reduced.
It will also allow for one set of rules of origin to qualify for tariffs reduction with RCEP members. A common set of regulations mean fewer procedures and easier movement of goods.
Source: CGTN
