Fifteen countries, mostly from the Asia-Pacific region, have formed the world’s largest trading bloc. This historic trading bloc, The Regional Comprehensive Economic Partnership (RCEP), involves:
- New Zealand
- South Korea
The free-trade agreement was signed on 15th Nov 2020 and is expected to take effect in two years.
The 15 member countries account for approximately a third of the world’s population (2.2 billion people) and 30% of the global GDP ($26.2 trillion), making it the world’s largest trade bloc. A trade bloc is a type of intergovernmental agreement, often part of a regional intergovernmental organization, where barriers to trade are reduced or eliminated among the participating states. Leaders formed the RCEP in hopes that it would spur economic recovery due to the global effect of Covid-19. It is expected that each country involved in the RCEP should see a dramatic increase in GDP once the trade agreement comes into effect.
To see countries working together to improve the lives of their citizens is a very positive thing to see in these uncertain times! Free-trade agreements such as these will provide a brighter future for everyone. Are you planning to expand to Asia in the future? This new development could help your business enormously! For advice on benefitting from this new agreement, contact us here.