Leaders of China and 14 other countries in the Asia-Pacific region have signed one of the largest free trade agreements in history, which includes 2.2 billion people and 30% of global economic output. Fifteen nations in the Asia-Pacific region signed the world`s largest free trade agreement on Sunday. The largest free trade agreement in history was signed over the weekend and 15 countries in the Asia-Pacific region agreed to be signatories. Overall, the agreement will cover 30% of global GDP and the world`s population to exceed the level of the Trans-Pacific Partnership. Although the agreement does not offer the same level of integration as the EU or the agreement between the United States and Mexico-Canada, it was seen as an important step towards removing trade barriers and extending China`s influence. Under the RCEP, the parts of all Member States would be treated in the same way, which could encourage companies in RCEP countries to look for suppliers in the commercial region. Chinese President Xi opens up to other trade agreements and imports APTA recognises the specific needs of the least developed countries and calls for concrete preferential measures in their favour (Article 3). Participating states can grant special concessions to least developed countries (Article 7) and commit to paying particular attention to NDC requests for technical assistance. In practice, most members have made special concessions to LDCs in successive rounds of trade liberalization (see here lists of concessions for the fourth round). APTA preferences may overlap with separate DFQF systems from China, India and the Republic of Korea, as well as preferences under the SAFTA, ASEAN-China, ASEAN-India and ASEAN-Republic of Korea regional trade agreements. The China-backed agreement is seen as an alternative to the Trans-Pacific Partnership (TPP), a Washington trade initiative that no longer exists. Ten ASEAN countries and five other Asia-Pacific countries have signed the world`s largest trade agreement on GDP.

The pact is expected to boost economic growth in a region hit hard by the coronavirus pandemic. Read also: The Real Winners of the U.S.-China Trade Dispute The agreement excludes the United States, which withdrew from an Asia-Pacific trade pact in 2017. In 2019, the total GDP of the signatories was $26.2 billion (20 Tn), or about 30% of the world`s GDP. The agreement will cover nearly 28% of world trade. India was included in the trade pact, but withdrew from the pact last year. The statement by the Heads of State and Government states that the agreement demonstrates «our strong commitment to supporting economic recovery, inclusive development, job creation and strengthening regional supply chains, as well as our support for an open, rules-based open trade and investment agreement.» «Ratification is likely to be difficult in national parliaments, both because of anti-commercial and anti-Chinese sentiment,» he added. The RCEP agreement is flexible enough to meet the needs of different countries as diverse as Australia, Myanmar, Singapore and Vietnam.