Connecting Asia: What Big-Scale Trade Deal Promises to Influence China
TRT
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In a conversation with TRT in Russian, Guy Burton , associate professor at Vesalius College, Brussels , noted that the multilateral deal matters because it represents the world's largest trade agreement, as measured by the size of the participants' GDP. "This is also China's first multilateral trade agreement, and as Japan and South Korea are parties to it, all three economies will benefit significantly from tariff cuts and further trade liberalization," the analyst said.
Most of the trade that can be created or redirected will go to these three states, he said.
"China's involvement also provides some insight into the potential for an agreement," says Burton. "Some studies have indicated that it is relatively 'thin' in the sense that there is little mention of sustainability, environmental labor standards or industrial subsidies in the text." This is especially noticeable when compared with other free trade agreements. “But whether it all comes down to China is a moot point. Rather, it is a reflection of the preferences of all participants, ”the analyst notes.
“I would perhaps call for caution in discussions about this being a Chinese dominance machine,” Burton says. According to him, the RCEP signatories have room for future negotiations and further liberalization, as well as for the accession of new members. But these candidates will find it increasingly difficult to advance their agenda: RCEP will become more institutionalized over time. “For a retired India, it may not be easy to pursue its own goals - and through them - restrictions on China's preferences,” concluded Burton.
