China has decided to support the formation of a world trade bloc created by fifteen Asian and Pacific economies, an agreement that excludes the United States, which left a rival group from Asia and the Pacific during the term of President Donald Trump, reports the agency “Reuters ”This Sunday, November 15th.
The signing of the Regional Comprehensive Economic Partnership (RCEP) can consolidate China’s position as an economic partner in Southeast Asia, Japan and Korea, placing the world’s second largest economy in a better position to shape the region’s trade rules.
The RCEP brings together the 10-member Association of Southeast Asian Nations (ASEAN), China, Japan, South Korea, Australia and New Zealand. The objective is to progressively reduce tariffs in many areas in the coming years and to help China reduce its dependence on foreign markets and technology.
“The RCEP will soon be ratified by the signatory countries and will come into force, contributing to the post-pandemic economic recovery of Covid-19,” said Nguyen Xuan Phuc, Prime Minister of Vietnam, where the ceremony took place as president of ASEAN .
RCEP will be responsible for 30% of the global economy, 30% of the global population and will reach 2.2 billion consumers.
China’s finance ministry has indicated that the new bloc’s promises include the elimination of some tariffs within the group immediately and others over the next 10 years. “For the first time, China and Japan reached a bilateral tariff reduction agreement, achieving a historic breakthrough,” the ministry said in a statement.
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