RCEP, a boon for trade prospects in Asean

THE Regional Comprehensive Economic Partnership (RCEP), when implemented, will provide greater trade and investment opportunities for member countries.

Asean officials and their counterparts from Asean’s six FTA partner countries face challenging tasks towards realising the Regional Comprehensive Economic Partnership (RCEP) after meeting for the first time yesterday at the International Convention Centre.

In a separate interview with the chair of the first RCEP TNC meeting, Mr Iman Pambagyo, Director-General of the Indonesian Ministry of Trade, reiterated that this involves establishing a comprehensive economic partnership encompassing 16 countries with a total population exceeding three billion people and a combined GDP of about US$17.23 trillion.

RCEP partnership includes the 10 Asean countries and its FTA partners, namely China, Japan, South Korea, India, New Zealand and Australia.

The second meeting of the RCEP TNC is scheduled to take place in Australia from September 23 to 27. The partners hope that the completion of negotiations will conclude by 2015.

In an interview, Mr Iman Pambagyo told the Bulletin the closed-door meeting discussed how the working groups would conduct their duties towards the establishment of the RCEP. It is hoped that by the end of the meeting in Brunei Darussalam, the working groups will have a clear understanding on the scope or issues they will be working on.

“Because this is the first time we have such an affiliation, it has been quite a challenge for us. But I think we all share the spirit of moving forward with this initiative,” he said.

In explaining further on the scope of works towards establishing RCEP, he said, “Our colleague from Australia has mentioned that this is about creating a partnership (in a scale) that seconds only to the WTO.

“I will be very careful to refer to it as a pact but if implemented, it will lead into a deeper and enhanced regional economic cooperation, which includes 16 countries altogether and maybe more,” he said when asked whether this will become the world’s biggest economic pact.

“Based on the guiding principles put forward by the leaders last year, we would first want to finalise agreements within initial partners, but once we implement the partnership, it will be opened to others to join. In the next few days, the meeting also hopes to form clear guidelines for the various working groups,” he concluded.

Meanwhile, Mr Micheal Mugliston, Special Negotiator at the Australia Department of Foreign Affairs and Trade congratulated Asean on its initiatives and leadership in laying the groundwork for RCEP and its constructive engagement with its Free Trade Agreement partners over the past year, which has brought officials together for the RCEP negotiations, which commenced yesterday.

Mr Micheal Mugliston called it a ground-breaking initiative for all 16 participating countries who, together, account for almost half of the world’s population and 30 per cent of global GDP.

“We have made good preparation for negotiations over recent months, and we need to build on this good work with energy and a collaborative spirit to advance our interests in securing a good and timely outcome in the RCEP negotiations.

“We will have to work intensively and efficiently to bring the negotiations to a satisfactory conclusion for all 16 countries by the target date of end of 2015.

“When concluded, the RCEP will provide greater trade and investment opportunities for all RCEP countries which will improve the economic life of our citizens,” he said.

In a joint statement, RCEP members highlighted that in line with the RCEP Leaders’ Joint Declaration on the Launch of Negotiations for the RCEP of November 20, 2012 and the Guiding Principles and Objectives for Negotiating the RCEP endorsed by RCEP Ministers on August 30, 2012, the RCEP negotiations will aim to achieve a modern, comprehensive, high-quality and mutually beneficial economic environment in the region to facilitate the expansion of regional trade and investment and contribute to global economic growth and development.

The joint statement also aims to boost economic growth and equitable economic development, advance economic cooperation and broaden as well as deepen integration in the region through the RCEP, which will build upon the existing economic linkages.

Negotiations for the RCEP will recoqnise Asean’s centrality in the emerging regional economic architecture and interests of Asean’s FTA Partners in supporting and contributing to economic integration and strengthening economic cooperation among the participating countries.

RCEP will have broader and deeper engagement with significant improvements over the existing Asean+1 FTAs while recognising the individual and diverse circumstances of the participating countries.

It will also include provisions to facilitate trade and investment and enhance transparency in trade and investment relations between the participating countries whilst facilitating the participating countries’ engagement in global and regional supply chains.

Taking into consideration the different levels of development of participating countries, the RCEP will include appropriate forms of flexibility including provision of special and differential treatment, plus additional flexibility to the least-developed Asean member states, consistent with the existing Asean+1 FTAs, as applicable.

May 10, 2013

Source: borneobulletin.com.bn