Categories: Market Overview

The world’s largest trade deal could be signed in 2020 — and the US isn’t in it

After more than six years of negotiations, more than a dozen countries in Asia Pacific are now aiming to sign what would be the world’s largest trade agreement in 2020. The deal, called Regional Comprehensive Economic Partnership or RCEP, involves all 10 countries from the Association of Southeast Asian Nations (ASEAN) bloc and five of its major trading partners: Australia, China, Japan, New Zealand and South Korea.

Together, the 15 countries make up close to one-third of the world population and global gross domestic product, according to a Reuters report. That’s larger than other regional trading blocs such as the European Union and the United States-Mexico-Canada Agreement, or USMCA. The mega-deal started with 16 countries but India decided not to join the trade pact over concerns that it would hurt the South Asian country’s domestic producers.

Those six other countries — Australia, China, India, Japan, New Zealand and South Korea — already have standalone free trade agreements with ASEAN. Coming together under RCEP would boost commerce across the group by lowering tariffs, standardizing customs rules and procedures, and widening market access especially among countries that don’t have existing trade deals. In 2017, however, U.S. President Donald Trump pulled his country out of the TPP and slapped punitive tariffs on several U.S. trading partners for what he said were unfair trade practices. In particular, the U.S.-China trade war has hurt many Asian exporters by reducing demand for their goods and slowing down growth. The urgency to conclude RCEP increased after all that.

The world’s largest trade deal could be signed in 2020 — and the US isn’t in it, CNBC, Nov 12
The FxPro News Team

This team of professional journalists announces the most interesting and influential articles from the major financial media as a brief summary. All such news may have sufficient potential to affect the course of trading assets.

Share
Published by
The FxPro News Team
Tags: RCEP

Recent Posts

Key Events for the Week Ahead

Political developments will impact financial markets, with the focus on policies from Trump's administration and…

4 hours ago

The impact of the Fed’s decisions on the Dollar

The Federal Reserve cut the key rate, causing minimal market reaction. The market predicts a…

4 hours ago

Prospects for gold correction

Gold has experienced a correction, losing over 5% since late October. Further declines are expected,…

7 hours ago

The crypto market stands on top

The cryptocurrency market is consolidating near a $2.5 trillion capitalisation level, with Bitcoin stabilising near…

11 hours ago

EURAUD Wave Analysis 7 November 2024

- EURAUD under bearish pressure - Likely to fall to support level 1.6125 EURAUD currency…

1 day ago

GBPUSD Wave Analysis 7 November 2024

- GBPUSD reversed from support level 1.2840 - Likely to rise to resistance level 1.3050…

1 day ago

This website uses cookies