You may read: Fifteen countries in the Asia-Pacific have formed the world’s largest trading bloc, covering nearly a third of the global economy. The Regional Comprehensive Economic Partnership (RCEP) is made up of 10 Southeast Asian countries, as well as Japan, Australia, South Korea, China and New Zealand.
The bloc is seen as an extension of China’s influence in the region.
The deal excludes the United States, which withdrew from a rival Asia-Pacific trade pact in 2017.
Shortly after taking office, President Donald Trump pulled his country out of the Trans-Pacific Partnership (TPP). The deal was to involve 12 countries and was backed by Mr Trump’s predecessor Barack Obama as a way to counter China’s surging power in the region.
Negotiations over the new pact lasted for eight years. On Sunday, the deal was finally signed on the sidelines of a virtual summit of the Association of Southeast Asian Nations, hosted by Vietnam.
Leaders of these countries hope that the agreement will help to spur recovery from the coronavirus pandemic.
Chinese Premier Li Keqiang said: “Under the current global circumstances, the fact the RCEP has been signed after eight years of negotiations brings a ray of light and hope amid the clouds.”
India, one of the biggest markets in Asia and the world, was also part of the negotiations of RCEP but pulled out last year over concerns that lower tariffs could hurt local producers.
Signatories of the deal said the door remained open for India to join in the future.
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