India Steps Back From RCEP Trade Pact: Reuters

China has joined with ASEAN, Japan, South Korea, Australia and New Zealand to develop the Regional Comprehensive Economic Partnership, or RCEP. If successful, RCEP, could become the world’s largest trade agreement. The agreement gradually reduces tariffs and streamlines export requirements, reports Matthew Tostevin for Reuters, and “offers an incentive for companies to build supply chains within the region even if they export outside.” RCEP has some membership overlap with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, but covers fewer products, especially agriculture. India dropped out, concerned about low-cost goods from China, but can join later along with other nations. “China is already the biggest source of imports and destination of exports for nearly all the RCEP countries,” Tostevin explains. “But at a time of growing concerns over China’s might, it cements its position more firmly as an economic partner with East and Southeast Asia. It will also be better placed to shape the region’s trade rules. RCEP members would make up one third of the world’s population and one third of global domestic product. The US-China trade war helped the group hurry along this trade deal. – YaleGlobal