An expert has mounted a defense of the China-led Regional Comprehensive Economic Partnership (RCEP) after news that 11 of the 12 original members of the Trans-Pacific Partnership Agreement will forge ahead with the deal after the United States dropped out.
A new pact, known as the Comprehensive and Progressive Agreement for the TPP, substantially lowers tariffs on a wide range of goods but excludes China. Some have criticized the sluggish pace of RCEP talks as a result, the Global Times reports.
But Wei Jianguo, China's former vice-minister of commerce, who is also vice-president of the Beijing-based think tank the China Center for International Economic Exchanges, says RCEP negotiations have proven particularly complicated.
First, Japan’s attitude towards the RCEP is unclear. It has not outright rejected the idea of joining the RCEP but has not extended an invitation for China to join the new TPP. Wei believes that behind the scenes, Japan's leaders would prefer the RCEP not to eventuate.
With significant economic disparities between member nations, Wei said some included in the TPP are concerned they may offend China if they continue to engage with Japan, but say it is unclear what the RCEP deal would entail. Geopolitically, he said the TPP could fail by forming a personal-interest clique in the region that leads to restrictions on trade and investment.
Ultimately, Wei said the new agreement had not yet impacted the RCEP. In the future, China will progress negotiations between the RCEP and the Free Trade Area of the Asia-Pacific (FTAAP) to further demonstrate its merits in connecting the whole Asia-Pacific region and ambitiously reviving the global economy.
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