THE Asean members and free-trade agreement (FTA) partner-countries are working to ensure the Regional Comprehensive Economic Partnership (RCEP) is a “substantive agreement” before concluding the deal.
“To conclude a substantive agreement [is] not necessary this year, but when we have something suitable for everyone; that everyone can gain something from it,” New Zealand Ambassador to the Philippines David Strachan said in an interview on the sidelines of New Zealand Food Connection.
Strachan said the RCEP deal is part of a broader FTA area, and one of the largest in the world.
“It would include economic giants, such as Japan and China, and that would be good for everyone. And [it] enhances markets and develops closer trade and economic linkages with powerhouse economies of Asia, including India,” he said.
RCEP aims to link Asean, an economic powerhouse with a market of 600 million people, to its six partner-countries, creating a bigger market of 3.5 billion people. These are Australia, China, India, Japan, South Korea and New Zealand, where Asean has FTAs.
It targets for an FTA in goods and services, as well as liberalizes flow of investments among the 10 Asean members and its partners.
“RCEP is a very important trading agreement for us. We hope it can be as comprehensive and as ambitious as possible,” the ambassador said.
“We look forward to work with partners from the Philippines and elsewhere in the region to conclude a really substantive agreement,” he added.