China: Pros and Cons of the Regional Comprehensive Economic Partnership Part 1

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Introduction

Many countries look to import and export their goods or services they produce in their country in order to increase gross domestic product (GDP) or to obtain the product at a cheaper price. The Regional Comprehensive Economic Partnership (RCEP) is a partnership agreement that will expand the free trade region in the major Asian countries and increase the benefits. The Association of Southeast Asian Nations (ASEAN) is the sole carrier of the RCEP which plans on integrating the “Plus six”, partners China, Australia, Japan, India, New Zealand and South Korea in order to achieve the expansion of free trade. This free trade agreement plans on bringing together the three largest economies in Asia in hopes to achieve economic activity with China as one of the leaders. It will also create one of the largest trading blocs in the world.

China has one of the fastest growing economies in the world. The country is one of the largest exporters in Asia and is one of the three superpower countries. Centralized around (ASEAN), the (RCEP) plans on offering a more in depth free trade agreement. The 10 countries involved with ASEAN and the “Plus six” countries plan to hopefully expand their trade in the region with RCEP by 2015. In hopes to create the largest trade bloc in the world, the RCEP is hoping to form a regional trade agreement with China, India and Japan, Asia’s three largest

economies. However, the more countries involved with an agreement the harder it is to maintain the same terms that will satisfy and compile with each country.

Data

Although the final settled agreement of the RCEP project the GDP total of all the three super countries together to be around $19 trillion US dollars, the RCEP may not gain the full econo...

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...hra, R.. (2013, Aug. 2 ). In RCEP: Challenges, opportunities for India. Retrieved Apr. 20, 2014, from http://idsa.in/system/files/artic.pdf Guoqiang, Tang . "Prospects for Asia Pacific Economic Integration." China Institute of International Studies. China Institute of International Studies, 19 Mar. 2014. Web. 28 Apr. 2014. . Wignaraja, Gabneshan. "Why the RCEP matters for Asia and the world." East Asia Forum. N.p., 15 May 2014. Web. 29 Apr. 2014. . Sinha, Rohit, and Geethanjali Nataraj. "Regional Comprehensive Economic Partnership (RCEP): Issues and Way Forward." The Diplomat. N.p., 30 July 2013. Web. 23 Apr. 2014. .

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