Regional Comprehensive Economic Partnership
Also called: RCEP · Topic: International Trade: Patterns, Ports and the WTO · NCERT: Beyond NCERT
Meaning
The Regional Comprehensive Economic Partnership (RCEP) is a free trade agreement of 15 Asia-Pacific countries. Its members are the 10 ASEAN countries plus China, Japan, South Korea, Australia and New Zealand. It came into force in January 2022. It is the largest trade bloc by GDP, which means the total value of its members' economies. It matters because it ties together the factories and supply chains of East and Southeast Asia.
Example
India took part in the RCEP talks but left in 2019. It worried about its large trade deficit with China, meaning it buys much more from China than it sells. It also feared cheap imports would hurt its farmers and dairy sector.
Don't confuse with
- ASEAN: the 10-member Southeast Asian group set up in 1967, with headquarters in Jakarta. RCEP is ASEAN plus five other countries.
- CPTPP: a separate 11-country Pacific Rim pact.
Related concepts
- Regional trade blocs
- Mercosur
- Comprehensive and Progressive Agreement for Trans-Pacific Partnership
- African Continental Free Trade Area