World’s largest trade deal may be signed in 2020 with many countries joining in.
The U.S. and India will not be participating in this free trade pact. Other Asian countries like China and Japan will be part of the pact.
The Regional Comprehensive Economic Partnership (RCEP) has been in the making for about seven years. Some of the countries that are already in the trade agreement are China, Japan, Australia, Malaysia, Singapore, South Korea, and Indonesia. The RCEP was first started in 2013 with 16 countries negotiating in it.
With the trade war causing much damage to China and bringing in a global slowdown, the trade pact will bring in more power to China. China will lead other countries in the free trade agreement.
The trade war between the U.S. and China has affected trade within the two countries. It is bringing in a protectionist approach that has brought a slowdown in all countries, dragging growth.
The RCEP is bringing in an openness that will help to keep its protectionism, nationalism, regionalism, cooperation, and solidarity says the East Asia Forum. Asia is open to business, it says.
The U.S. which is a trading partner of Asian countries like Vietnam and Japan will be affected by the RCEP, while trade in China will continue to grow.
India has not signed the deal, saying that the deal will affect growth within its country.
The Trans-Pacific Partnership (TTP) was another trade pact that was considered a large trade deal that would have come into existence, but the U.S. pulled out of the partnership in 2017 and China was not part of it at all.
The RCEP which is an important pacific trade deal is considered to be even bigger and the U.S. is not part of it. If the RCEP is signed, it would be a big win for China to overthrow the U.S. from the Asian region.