Fifteen countries in the Asia Pacific have formed the world’s largest trading Bloc which covers almost a third of the global economy and over 26 trillion dollars in gross domestic product. The pact was signed on Sunday .
The Regional Comprehensive Economic Partnership (RCEP) which was signed by China, Japan, Australia, New Zealand, South Korea and the 10 countries that make up the Association of SouthEast Asian Nations (ASEAN) is estimated to strengthen economic times within the region and add 200 billion dollars to the global economy annually by 2030.
According to an analysis by Fortune, the agreement is said to be a geopolitical win for China as it enables the the country to formalize and stregthen ties with other countries in Asia.
The RCEP will be China’s first multilateral trade. According to the Chinese Premier Li Keqiang, the RCEP is a victory of multilateralism and free trade.
President Donald Trump had withdrawn the US from the global free trade agreements. India also pulled out in November 2019 over fears that the terms of the agreement would hurt local producers and would expand India’s exisitig trade deficits with RCEP member nations, especially China.
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