BACKGROUND
Source: MITI Malaysia
The Regional Comprehensive Economic Partnership (RCEP) negotiation was launched during the 21st ASEAN Summit in Phnom Penh, Cambodia in November 2012. The 16 participating countries are 10 ASEAN nations, Australia, China, Japan, Korea, India and New Zealand.
The RCEP is an ASEAN driven initiative that aims to integrate economically the 16 countries in Asia and Oceania countries. The Leaders of the 16 RCEP participating countries agreed that RCEP shall involve broader and deeper engagement with significant improvements over existing ASEAN Free Trade Agreements (FTAs) and Comprehensive Economic Partnership Agreements (CEPs) with these countries.
The RCEP negotiations are based on the Guiding Principles and Objectives for Negotiating RCEP which was endorsed by the leaders at the time of launching the negotiations. The Guiding Principles is as attached.
Market Snapshot: AEC; RCEP; and TPP (2015/2016)
RTAs | AEC | RCEP | TPP |
Population (million) | 620 | 3,534.4 (50%) | 789.2 (11.3%) |
GDP (US$ trillion) | (US$2.5) | US$22.5 (30.4%) | 28.55 (37%) |
Total Trade and % of World Trade | 2,259.5 billion (6.8%) | 9,547.2 billion (28.7%) | 8,728.0 billion (26.3%) |
Exports and % of World Exports | US$1,164.5 (7.0%) | 5,077.4 billion (30.8%) | 3,961 billion (24%) |
Imports and % of World Imports | US$1,095.0 (6.5% | 4,469.8 billion (26.7%) | 4,767 billion (28.4%) |
- Collectively, the AEC and RCEP account for combined output amounting to US$22.4 trillion or 30.6% of world output. Total trade of RCEP in 2015 was significant at US$11.9 trillion and total FDI inflows to the 16 countries amounting to US$329.6 billion.
ASEAN Plus 1 FTAs/CEPs
FTA | Entry into Force | Scope |
ASEAN-China | 2005 | Goods, Services, Investment, DSM |
ASEAN-Korea | 2007 | Goods, Services, Investment, DSM |
ASEAN-Japan | 2008 | Goods, Services, Investment, DSM |
ASEAN-India | 2010 | Goods, Services, Investment, DSM |
ASEAN-Australia-New Zealand |
| Goods, Services, Investment, DSM, MNP, E-Commerce, IPR, Competition and Economic cooperation. |
