Importance of Regional Comprehensive Economic Partnership (RCEP) in Global Trade
With the continuous rise of COVID-19 cases worldwide, economic prosperity has been put at stake. Leaders continue to struggle to restore the damages this pandemic has brought. But the establishment of the Regional Comprehensive Economic Partnership (RCEP) is expected to limit these effects and redirect the economic power back to Asia.
Provisions of the Regional Comprehensive Economic Partnership
In November 2020, this free global trade agreement was signed by 15 Asia-Pacific nations, amounting to at least 30% of the world’s total gross domestic product (GDP) and population. Among these signatories include some of the 3E network’s member countries, namely Indonesia, Singapore, and Malaysia.
Through this agreement, a more modern, inclusive, and mutually advantageous trading system has been developed. Consequently, the deepened relationship formed because of this partnership among nations will provide more business and work opportunities for its people. Hence, resulting in a more secure economic prosperity, growth, and development within the following years.
More Contemporary Trading System
One of the provisions in the Regional Comprehensive Economic Partnership includes its new and improved global trading system. This agreement not only considers the present circumstances of its participating nations but also ensures everyone’s future.
Among the agreed-upon practices include removing at least 90% of tariffs among these countries and developing a more comprehensive and structured electronic commerce provision. With this new trading system, more growth opportunities will arise for all forms and levels of enterprises.
Enhanced Inclusivity for Participating Nations
Aside from a more modern trading system, the RCEP also considers its inclusivity to the participating nations. It has enhanced coverage for various standards, trading customs and procedures, and technical regulations. It also covers multiple businesses, from small and medium enterprises to investment firms and electronic commerce.
Mutually Advantageous to Countries of Varying Economic Backgrounds
Lastly, the signatories of the RCEP come from varying economic backgrounds. Some countries have shown low development over the years, while others have continuously grown and prospered. However, this diversity among the participating nations can bring mutual benefits to each other.
With the establishment of the RCEP, the 15 Asia-Pacific countries will experience a mutually beneficial trading system and regulations to ensure that no nation is left behind. It considers the situation of its signatories and extends greater flexibility to its provisions for less developed countries. Not only will this enhance the global relationship of the signatories, but it will also provide more support and opportunities to their citizens.
Revolutionizing Global Trade in the Coming Years
The Regional Comprehensive Economic Partnership is expected to revolutionize global trade in the coming years. Small and medium enterprises and investment firms, and electronic commerce can maximize the emergence of more growth and employment opportunities for its stakeholders in the future.
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