RCEP negotiations expected to conclude in early 2020
RCEP negotiations expected to conclude in early 2020
Bringing ASEAN member countries and six partner nations together for closer trade relations in pursuit of stronger growth, the final round of negotiations on the Regional Comprehensive Economic Partnership (RCEP) pact will conclude on September 27, according to Minister of Industry and Trade Tran Tuan Anh.
The 28th meeting of the trade negotiating committee on the RCEP pact to bridge the differences between the economies are running from September 19 to 27 in Danang City, the minister said, adding that the leaders of the 16 participating economies are scheduled to meet early next year to announce the formal conclusion of technical negotiations.
“There are still differences in goods and investment systems between some economies in the RCEP,” Anh told a negotiation session today, September 23, explaining that among the partners joining the negotiation, some have signed free trade agreements (FTAs) with each other.
These partners have pledged to open up their goods markets and have offered services at various levels. As many member countries have yet to sign an FTA, it may be difficult to reach a consensus to open the market at a common level.
Besides this, the economic growth rates differ among the member countries, so at the negotiation sessions, the countries must seek effective solutions for bottlenecks and should balance the benefits for their economies.
As such, Anh stated, this meeting on the RCEP will lift technical barriers and narrow differences.
When put in place, the RCEP will create a market of some 3.5 billion consumers, with a gross domestic product (GDP) scale of US$49.5 trillion, accounting for 39% of the global GDP, the minister remarked.
“With commitments of openness to goods, services and investments and the simplification of customs procedures, as well as favorable conditions for origin requirements, the RCEP pact is expected to form the world’s largest free trade zone, with value chains in the region and the global market,” he said.
The zone will also promote economic growth for ASEAN countries, including Vietnam.
“As the host of the 28th meeting, Vietnam will strive to collaborate with its partners to fulfill the target and complete the signing of the pact in 2020,” Anh noted.
ASEAN countries and six partners---China, South Korea, Japan, India, Australia and New Zealand---that have signed FTAs with the ASEAN, started negotiations on the RCEP on May 9, 2013.
The negotiations have so far resolved issues related to economic cooperation, small and medium enterprises, customs procedures and trade facilitation, Anh said.
Negotiations on financial and telecommunications services have recently been concluded.
