The agreement excludes the United States, which withdrew from an Asia-Pacific trade pact in 2017. An Indonesian product containing, for example, Australian coins could expect tariffs elsewhere in the Asean Free Trade Area. Over time, the RECP will already resort to low tariffs on trade between Member States, which are even lower. It will account for 30% of the world economy, 30 per cent of the world`s population and, according to Vietnam, 2.2 billion consumers. However, CSIS` Green says that the „critical game” historians might look back „is not beyond the 20th century lower tariffs, but 21st century definition of rules on data, reciprocity, digital commerce, where the United States is a critical player.” President Barack Obama has defended the Trans-Pacific Trade Pact to oppose China, which is writing global trade rules for the 21st century. But days after taking office, President Trump withdrew the United States from the agreement and imposed tariffs on trading partners and sparked a trade war with China. Chinese Premier Li Keqiang on Sunday called the agreement a „victory for multilateralism and free trade,” according to a report by the state-run Xinhua news agency. The United States is not present at the RCEP and the 11-nation Trans-Pacific Partnership (TPP) agreement, which U.S. President Donald Trump resigned shortly after taking office. Thus, the world`s largest economy remains made up of two trade groups that make up the fastest growing region of the world. Although the strategic effects are probably not immediately felt, the long-term effects could be profound.
In the mid-20th century, the establishment of international standards in the United States – trade rules and industrial standards at the angle of screw drops and the shape of traffic signs – was a crucial and often underestimated pillar of American world power. However, according to Evan Feigenbaum of the Carnegie Endowment for International Peace, the United States is now outside the two agreements „that will set trade and investment standards in Asia for a generation.” „It really doesn`t offer any kind of disciplines or constraints that would change China`s business model,” says Chad Bown, business economist at the Peterson Institute for International Economics. The AptA recognises the specific needs of LDCs and calls for concrete preference measures in its favour (Article 3). Participating states can grant special concessions to least developed countries (Article 7) and commit to paying particular attention to NDC requests for technical assistance. In practice, most members have made special concessions to LDCs in successive rounds of trade liberalization (see here lists of concessions for the fourth round). According to a blog analysis by the Brookings Institution, the Trans-Pacific Agreement and the new RCEP „will together offset global losses resulting from the trade war between the United States and China, but not for China and the United States.” China, meanwhile, applauded rcep as a victory. „The signing of the RCEP is not only a monumental achievement of East Asian regional cooperation, but even more important, a victory for multilateralism and free trade,” Premier Li Keqiang said, according to Chinese media. The pact will enter into force as soon as a sufficient number of participating countries ratify the internal agreement within the next two years. Under the RCEP, the parts of all Member States would be treated in the same way, which could encourage companies in RCEP countries to look for suppliers in the commercial region. The agreement is a blow to China, by far the largest market in the region, with more than 1.3 billion people, allowing Beijing to position itself as a „defender of globalization and multilateral cooperation” and give it greater influence over regional trade rules, said Gareth Leather , Asia`s chief economist for capital firms, in a report.