Benefits of key Asia-Pacific trade pact will be uneven

Significance

RCEP, which involves the ten ASEAN states and five of the bloc’s Asia-Pacific partners, will be the world’s largest free trade agreement (FTA), covering more than half its exports and almost one-third of its GDP.

Impacts

• RCEP should help drive economic recovery in South-east Asia in the short term as the region tries to manage a COVID-19 resurgence.
• Western states will benefit from RCEP commitments to maintaining open markets and supporting the global trading regime.
• A failure by members to formulate a unified response to climate change could lead to punitive trade measures from external players.