Nearly after a decade of negotiations, 15 Asia-Pacific nations including China, Australia, Japan and S. Korea had formed the world’s largest free trade zone on Sunday which analysts had widely contemplated as a China-backed group that excluded the United States, stoking a sense of urgency for the US Government to improve its trade tie with EU.
Aside from that, as a historic signing event of the 15-country Asia-Pacific free trade zone, named as RCEP (Regional Comprehensive Economic Partnership), took place at a regional summit in Hanoi, the trade deal had dealt a fresh blow to Trump Administration which had left the group back in the 2017.
On top of that, analysts were quoted saying followed by the Sunday’s breakthrough move from China alongside other major Asia-Pacific economies that the free trade deal would highly likely to prompt India to rethink whether the world’s third-largest economy by PPP (Purchasing Power Parity) should consider a move to join the newly formed free trade pact despite its recent leg of territorial dispute with Beijing.
Asia-Pacific nations form the world’s biggest free trade zone
In tandem, amid conflicting narratives over US Government’s stance on RCEP, the landmark agreement on a free trade zone that spanned roughly a third of the world, would more likely to nullify the voids which the world’s second-largest economy had been struggling to fill up with its Southeast Asian allies alongside Japan and S.
Korea, cementing China in a better position which has every potentiality to reshape the global economic landscape given the extent of cheaper labour force available in Southeast Asian countries and the United States’ absence from both RCEP alongside the Trans-Pacific Partnership.
Concomitantly, while the RCEP trade deal has been expected to resolve China’s trade disputes with Australia and New Zealand, two of the China’s largest suppliers of industrial metals, the deal might help Beijing trim its dependency on overseas markets for both technologies and workforces and could turn it into the fastest growing economy across the globe, suggested analysts.