ASEAN Harnesses RCEP Deal to Drive Open Regionalism, Break Trade Barriers

Although India initially participated in the negotiations, it later decided to withdraw, possibly due to concerns about China's presence.

Regional Trade
Photo by Eko Herwantoro / Unsplash

ASEAN should utilize the Regional Comprehensive Economic Partnership (RCEP) agreement as a means to promote open regionalism and avoid trade restrictions, according to Iman Pambagyo, a former trade negotiator.

He emphasized that no country can rely on a closed supply chain system and highlighted the importance of markets, resources, and technology for economic development.

RCEP and ASEAN

ASEAN, with Indonesia playing a major role, should keep the regional bloc as the anchor of the RCEP. The RCEP includes ten ASEAN countries and five dialogue partners, aiming to enhance economic integration, cooperation, and growth in the region. Although India initially participated in the negotiations, it later decided to withdraw, possibly due to concerns about China's presence.

However, the RCEP remains open to other countries, with expressions of interest from economies like Chile, Hong Kong, Taiwan, Bangladesh, and Sri Lanka.

The agreement eliminates tariffs on a significant portion of traded goods, boosting intra-regional trade. Indonesia has begun implementing the RCEP agreement earlier this year, wrote the Jakarta Globe.

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