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Rcep Agreement Asean

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The Regional Comprehensive Economic Partnership (RCEP) is a free trade agreement signed between the Association of Southeast Asian Nations (ASEAN) and six of its trading partners: China, Japan, South Korea, Australia, New Zealand, and India. The agreement is the world`s largest free trade deal, covering about a third of the world`s population and GDP.

The RCEP agreement was signed on November 15, 2020, after eight years of negotiations. It aims to reduce trade barriers, promote investment, and improve economic integration among the signatories. The agreement includes provisions on tariff reduction, rules of origin, customs procedures, technical barriers to trade, and intellectual property rights.

One of the key benefits of the RCEP agreement is the elimination of tariffs on a wide range of goods and services. The agreement will gradually reduce or eliminate tariffs on 90% of the products traded among the signatories. This will make it easier and cheaper for businesses to export and import goods and services, ultimately leading to increased trade and economic growth.

The RCEP agreement also includes provisions on investment protection and dispute settlement. These provisions will provide investors with greater certainty and protection, as well as a mechanism to resolve any disputes that may arise. This will encourage more investment and help to promote economic development in the region.

Critics of the RCEP agreement have raised concerns about its potential impact on labor rights, environmental standards, and intellectual property rights. However, the signatories have emphasized that the agreement includes provisions to protect these rights and ensure that the benefits of free trade are shared by all.

Overall, the RCEP agreement is a significant step towards greater economic integration in the Asia-Pacific region. It will promote trade, investment, and economic growth among the signatories, while also strengthening their relationships and cooperation. As the world becomes increasingly interconnected, such agreements are crucial to promoting global trade and prosperity.