China along with 14 countries in the Asia-Pacific region signed one of the biggest free trade deals in history, covering 2.2 billion people and 30% of the world’s economic output.
The Regional Comprehensive Economic Partnership (RCEP) was signed over a video link on Sunday after eight years of negotiations.
Australia, Japan, New Zealand and South Korea signed the deal, alongside members of the 10-nation Association of Southeast Asian Nations (Asean), including Indonesia, Malaysia, the Philippines and Thailand.
The deal signed set the terms of trade in goods and services, cross-border investment and new rules for increasingly important areas such as electronic commerce and intellectual property. The effect on the trade of finished goods between Asian nations will be particularly marked, analysts have said.
According to Guardian, the combined GDP of the signatories was $26.2tn (£20tn) in 2019, or about 30% of global GDP. The deal will cover nearly 28% of global trade.
Τhe signatories also left the door open for India, welcoming the country’s potential join.
While not offering the same level of integration as the EU or the US-Mexico-Canada Agreement, the deal has been seen as a significant step towards removing trade barriers, as well as extending the influence of China.
Australia’s prime minister, Scott Morrison, said the deal would “open up new doors for Australian farmers, businesses and investors”.
