15 Asia-Pacific Economies Sign World’s Biggest Trade Deal

Fifteen Asia-Pacific economies, including the Philippines, signed the world’s largest free trade deal last week, with observers saying the deal could boost Philippine market access while others believe it would worsen the trade balance. The deal was signed in a virtual ceremony as part of the annual ASEAN summit in Hanoi, Vietnam.

The Regional Comprehensive Economic Partnership (RCEP) is a trade pact that includes China, Australia, New Zealand, Japan, South Korea and all 10 ASEAN member countries comprising of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam.  This is the first time that China, Japan, and South Korea are all in a single free trade agreement.

The prospective free trade area accounts for around a third of the global population and economy and builds on existing bilateral and multilateral agreements in the region.  The RCEP is expected to enhance market access for key Philippine products including agricultural products, garments, and automotive parts.