Regional Comprehensive Economic Partnership (RCEP)

 The Regional Comprehensive Economic Partnership (RCEP) is a trade agreement between 15 countries in the Asia-Pacific region, signed on November 15, 2020. The agreement covers a wide range of areas, including trade in goods and services, investment, intellectual property, and e-commerce. In this article, we will discuss the details of the RCEP and its potential impact on the region and the world.

Participating Countries
The RCEP includes 10 members of the Association of Southeast Asian Nations (ASEAN): Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. In addition, it includes five countries with which ASEAN has existing free trade agreements: Australia, China, Japan, New Zealand, and South Korea.

The RCEP participating countries represent a combined population of over 2.2 billion people and a combined GDP of around $26.2 trillion, making it the largest trade bloc in the world.

Trade in Goods
The RCEP eliminates tariffs on a wide range of goods traded between the participating countries. The agreement includes a gradual tariff reduction schedule, with some tariffs being eliminated immediately and others being phased out over several years. This will make it easier and cheaper for businesses in the participating countries to trade with each other.

The RCEP also includes rules of origin, which specify the criteria that goods must meet in order to qualify for tariff-free treatment. This is important because it prevents goods from third-party countries from being transshipped through a member country to take advantage of the RCEP's tariff benefits.

Trade in Services
The RCEP covers trade in services, including financial services, telecommunications, transport, and professional services. The agreement includes provisions for market access, which ensure that service providers from one participating country can operate in another participating country. This will increase competition and choice for consumers in the region.

The RCEP also includes provisions for the temporary movement of natural persons, which allows businesses to bring in skilled workers from other participating countries to work on specific projects. This will make it easier for businesses to access the skills they need and to complete projects on time and within budget.

Investment
The RCEP includes provisions for investment, including the protection of investors and their investments. This will give businesses in the participating countries greater confidence to invest in each other's economies.

The agreement also includes provisions for the resolution of disputes between investors and governments. This will ensure that investors have access to an effective and transparent mechanism for resolving disputes with the government of the country in which they have invested.

Intellectual Property
The RCEP includes provisions for intellectual property, including patents, trademarks, copyrights, and trade secrets. The agreement includes commitments to protect and enforce intellectual property rights, which will provide greater certainty for businesses that rely on intellectual property.

The RCEP also includes provisions for the cooperation on intellectual property, which will help the participating countries to develop and implement effective intellectual property policies and practices.

E-commerce
The RCEP includes provisions for e-commerce, which is the buying and selling of goods and services over the internet. The agreement includes commitments to ensure the free flow of data across borders, which will help businesses to access new markets and customers.

The RCEP also includes provisions for consumer protection, which will help to ensure that consumers are protected when they buy goods and services online. The agreement also includes provisions for the protection of personal information, which will help to build trust between businesses and consumers.

Environment and Labor Standards
The RCEP includes provisions for environmental protection and labor standards. The agreement includes commitments to implement and enforce environmental laws and regulations, which will help to promote sustainable development in the region.

Background
The RCEP negotiations started in 2012, and the agreement was signed after eight years of negotiations. The RCEP was initiated by the Association of Southeast Asian Nations (ASEAN) and includes 10 member countries: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The RCEP negotiations also include five other countries that have existing FTAs with ASEAN: Australia, China, Japan, South Korea, and New Zealand.

The RCEP is seen as a response to the Trans-Pacific Partnership (TPP), a trade agreement between 12 Pacific Rim countries, including the United States, Japan, Canada, and Australia. However, the United States withdrew from the TPP in 2017, and the remaining 11 countries signed a modified version of the agreement, known as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in 2018.

Objectives
The main objectives of the RCEP are to promote economic integration, facilitate the movement of goods and services, and attract more foreign investment in the Asia-Pacific region. The agreement aims to achieve these objectives by reducing or eliminating tariffs and non-tariff barriers on goods and services, promoting investment, and enhancing economic cooperation among member countries.

Key provisions
The RCEP includes 20 chapters covering a wide range of areas, including trade in goods, services, investment, intellectual property rights, e-commerce, and competition policy. Some of the key provisions of the agreement are as follows:

• Tariff reduction and elimination: The RCEP aims to reduce and eliminate tariffs on a wide range of goods and services traded among member countries. The agreement provides for the immediate elimination of tariffs on over 65% of goods traded among member countries. Tariffs on other products will be phased out gradually over the next 20 years. The RCEP also provides for the reduction or elimination of non-tariff barriers, such as quotas and licensing requirements.
• Rules of origin: The RCEP includes rules of origin provisions, which determine the origin of goods for the purpose of determining their eligibility for preferential treatment under the agreement. The rules of origin provisions are aimed at preventing the circumvention of tariffs and ensuring that only goods produced within the RCEP region are eligible for preferential treatment.
• Services trade liberalization: The RCEP aims to liberalize trade in services among member countries by reducing or eliminating barriers to the cross-border supply of services. The agreement includes commitments on market access, national treatment, and most-favored-nation treatment for services providers in sectors such as telecommunications, finance, and professional services.
• Investment: The RCEP includes provisions on investment protection, such as protection against expropriation and the free transfer of funds. The agreement also includes provisions on investor-state dispute settlement (ISDS), which allows investors to bring claims against member states for breaches of investment obligations.
• Intellectual property rights: The RCEP includes provisions on intellectual property rights (IPR), such as patent protection, trademark protection, and copyright protection. The agreement aims to promote the protection and enforcement of IPR in the region and to facilitate the transfer of technology.