Associate Minister of State for Trade and Export Growth, Damien O’Connor has welcomed a commitment to conclude the Regional Comprehensive Economic Partnership negotiations next year following substantial progress this year.
The leaders of sixteen countries have collectively issued a joint statement in Singapore on Wednesday, November 14, confirming that negotiation on the Regional Comprehensive Economic Partnership (RCEP) have advanced to the final stage.
The leaders were in Singapore to participate in the two days East Asia Summit, ASEAN Summit, and RCEP Summit meetings.
RCEP - considered by many as a major surviving beacon of hope amidst growing fears of protectionism and trade wars – envisages creating a free trade zone between 10 ASEAN countries and six countries with which it have separate free trade agreements, viz, China, Japan, South Korea, India, Australia and New Zealand.
The RCEP countries, according to New Zealand government statistics, in March 2018, accounted for almost 32 per cent of world GDP, at US$27 trillion, and 28 per cent of global trade, while covering more than 3.5 billion people.
“When concluded, the RCEP Agreement will anchor New Zealand in a regional agreement with half the world’s population and markets that take more than half our total exports,” Damien O’Connor said.
“It will also provide us a free trade relationship with India, a fast-growing economy with a GDP of more than 2.6 trillion in 2018.
“RCEP is a counterbalance to the rising protectionism that threatens the global rules-based trading system.
“RCEP negotiations were launched in November 2012 and include 16 countries: New Zealand, Australia, the 10 countries of ASEAN (the Association of South East Asian Nations), China, India, Japan and South Korea.
“Seven Chapters of the agreement have now been concluded including Government Procurement, Customs Procedures, Sanitary and Phyto-Sanitary Measures, and Standards and Technical Regulations – which will improve the trading conditions for New Zealand businesses into the RCEP economies.
“RCEP countries have worked intensively this year, under Singapore’s leadership as ASEAN host for 2018, to bring RCEP close to conclusion.
“There is a strong resolve to build on the current momentum and wrap up RCEP negotiations in 2019,” Mr O’Connor said