Asia: World's largest free trade zone established
The countries of the Association of Southeast Asian Nations (ASEAN) and their trading partners have entered into an agreement on a Regional Comprehensive Economic Partnership (RCEP), which forms the world's largest free trade zone, writes RBK.
China, Australia, Japan and 12 other countries in the Asia-Pacific region announced the creation of the world's largest free trade zone. Also, the agreement was signed by 10 ASEAN member countries (Brunei, Vietnam, Indonesia, Cambodia, Laos, Malaysia, Myanmar, Singapore, Thailand, Philippines).
Within the framework of the concluded agreement, reduced trade duties will apply. It is also Japan's first free trade agreement with China and South Korea at the same time. Its entry into force will create the world's largest free trade zone with approximately 2.2 billion consumers and a GDP of US $ 28 trillion, which is more than 32% of total global GDP.
It is noted that the RCEP agreement will serve as an impetus for the recovery of the economies of the ASEAN countries in the post-pandemic period. According to experts, by 2050 the total GDP of the RCEP countries may grow to $ 100 trillion.
Recall that the Association of Southeast Asian Nations (ASEAN) was founded in 1967 and today unites all the countries of Southeast Asia: Brunei, Vietnam, Indonesia, Cambodia, Laos, Malaysia, Myanmar, Singapore, Thailand and the Philippines. Since the beginning of 2020, the powers of the ASEAN chairman have been transferred to Vietnam on a rotational basis.