China’s Free-Trade Opening in a World Without TPP: QuickTake Q&A
How Will a U.S. Withdrawal From TPP Impact Asian Markets?
The ever-bleaker prospects for a U.S.-led Asia free-trade deal is an opportunity for China. With political clouds over the 12-nation Trans-Pacific Partnership, the spotlight shifts to the 16-nation Regional Comprehensive Economic Partnership, which would strengthen trading ties among China, India and others with members of the Association of Southeast Asian Nations, or Asean. What began, in 2012, as a routine harmonizing of Asean agreements -- then took on the appearance of a protest movement against the American push in Asia -- now stands alone as potentially the world’s biggest free trade block.
Negotiations continue on the details. Broadly speaking, the deal would lower tariffs and other barriers to the trade of goods among the 16 countries that are in, or have existing trade deals with, Asean. Unlike the TPP and other U.S.-led trade deals, however, the RCEP wouldn’t require its members to take steps to liberalize their economies, protect labor rights and environmental standards and protect intellectual property.