On November 15th China, the ten members of the Association of South-East Asian Nations (ASEAN), Japan, South Korea, New Zealand and Australia signed the long-awaited Regional Comprehensive Economic Partnership (RCEP), a multilateral free-trade agreement (FTA).

RCEP will help to integrate regional supply chains more effectively and reduce risks associated with the US‑China trade war. However, it will provide a modest demand boost for trade, given that most goods tariff reductions have already been provided for under existing trade agreements, while planned liberalisation of services trade is limited.

The Economist Intelligence Unit believes that RCEP will have come into effect by the end of 2021, although ratification challenges will probably linger in some countries.

Read our report “RCEP set to strengthen Asian supply chains” to find out more.

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