The world`s largest free trade agreement is the Regional Comprehensive Economic Partnership (RCEP), which was signed on November 15, 2020. This historic agreement brings together 15 Asia-Pacific countries and covers a total population of over 2.2 billion people.
The RCEP agreement aims to boost trade and investment and promote economic integration among its members. It covers areas such as goods, services, investment, intellectual property, e-commerce, and competition, among others. The agreement is also expected to create new opportunities for businesses and consumers, particularly in the region`s fast-growing e-commerce sector.
The countries that are part of the RCEP agreement are Australia, Brunei, Cambodia, China, Indonesia, Japan, Laos, Malaysia, Myanmar, New Zealand, the Philippines, Singapore, South Korea, Thailand, and Vietnam. Together, these countries account for around 30% of the global population, and their combined gross domestic product (GDP) is estimated to be around $26.2 trillion.
The RCEP agreement is particularly significant for the Asia-Pacific region, which is one of the fastest-growing areas of the world in terms of trade and investment. By reducing trade barriers and promoting greater economic integration, the RCEP agreement is expected to boost economic growth and reduce poverty and inequality in the region.
In addition to its economic benefits, the RCEP agreement is also significant from a geopolitical perspective. With the United States having withdrawn from the Trans-Pacific Partnership (TPP) in 2017, the RCEP agreement represents a major shift in the balance of power in the Asia-Pacific region, with China taking a leading role in promoting regional economic integration.
Overall, the RCEP agreement represents a major milestone in the global economy, and its impact is likely to be felt for many years to come. As the world`s largest free trade agreement, it has the potential to promote greater economic integration and prosperity among its members, while also shaping the geopolitical landscape of the Asia-Pacific region.