RCEP Ministerial Meeting held Focus on the path to conclusion of negotiations

RCEP Ministerial Meeting held: Focus on getting a path to conclusion of negotiations November 1 5:02

RCEP = East Asia Regional Comprehensive Economic Partnership Ministerial Meeting will be held in Thailand on the 1st, with 16 countries including Japan and China participating. Before the summit meeting on the 4th of this month, the focus will be on the path to the conclusion of negotiations within the year.

RCEP is a large-scale economic partnership agreement involving 16 countries, including Japan, China, South Korea and India, as well as ASEAN members of the Association of Southeast Asian Nations. A ministerial meeting will be held in Bangkok, Thailand on the 1st, and Makihara Deputy Minister of Economy, Trade and Industry will attend from Japan.

RCEP has negotiated about 25 areas such as tariffs and investment rules, and has so far agreed on about 20 areas, but there is still a big gap in areas such as the elimination of tariffs.

In particular, China demands a large market opening from India, but India is difficult to negotiate from the standpoint of protecting domestic industries.

In addition, since six years have passed since the start of negotiations and there is a sense of stagnation, some countries have argued that a message indicating a certain level of achievement should be issued even if there are issues remaining.

RCEP's goal is to reach a conclusion within the year, and the ministerial meeting is the fifth time to accelerate negotiations. Before the summit scheduled for 4th of this month, the focus will be on creating a path toward a conclusion.

Expected to lead to economic growth in RCEP participating countries

RCEP is a large-scale economic partnership agreement, with GDP of the participating countries, such as Japan, China, and India, which is 30% of the world total.

It is expected that the liberalization of trade and investment in this area will lead to economic growth in each country.

According to Mitsubishi Research Institute's estimate, when RCEP comes into effect and tariffs in the region are abolished, Japan's GDP = gross domestic product will be boosted by 0.6%, and the economic effect of 11 countries excluding the United States will exceed TPP = Trans-Pacific Partnership Agreement There is to be.

The GDP of other participating countries is also expected to grow, with China increasing by 0.4% and India by 1.4%.

On the other hand, as the increase in trade within the RCEP region increases, the United States and the EU = European Union that do not participate in the RCEP are said to work slightly negatively on economic growth.

China Active in RCEP in US-China friction

As trade disputes with the US continue to prolong, China is strengthening its economic relationship with participating countries in the RCEP, such as ASEAN.

According to China's trade statistics from January to September, the combined trade and exports between China and the United States decreased by 14.8% compared to the same period last year due to trade friction.

On the other hand, the amount of trade between China and ASEAN increased by 5.9% compared to the same period last year, reversing the United States and becoming the second trading partner after EU, and the amount of trade with Australia also increased by 10.3%. .

The Chinese government has also shown a positive attitude to RCEP negotiations, and the secretary of the Ministry of Commerce in charge of negotiations said in a press conference in September, “RCEP has the largest number of participating countries in the world and has the greatest potential. “With rapid globalization of protectionism, it is very significant to quickly assemble large-scale free trade agreements,” he said.

On behalf of the US, which promotes a positive attitude toward free trade by demonstrating a positive attitude toward RCEP negotiations, urges cooperation with Asian countries, and strengthens the protectionist stance under President Trump , There seems to be a desire to expand the influence in this region.

Chinese expert “Important Significance in Competing with Rice”

Researcher Dr. Yong Chun of the China Institute of International Affairs, who is familiar with the economic relationship between China and Southeast Asia, explained the significance of RCEP for China. “RCEP member countries are the most vibrant and potential in the world in terms of economy. “Development of the relationship is very beneficial for China's exports,” he said, indicating that the economic benefits for China are significant as trade friction with the United States continues to prolong.

On top of that, “The United States has strengthened its solitaryism and trade protectionism, and the free trade system has been hit harder than ever. Steady progress in multilateral economic partnerships will constrain American monopoly. It ’s also useful in the above ”and stressed that it has significant significance in combating the United States.

On the other hand, Dr. Sakaki said, “In the field of intellectual property rights and technology transfer, there are differences in the opinions of participating countries, and it cannot be overcome in a short time. However, there are only two months left in the year, and it may be quite difficult due to concerns and concerns, "he said.

India Careful approach to market opening

India, a country with a population of over 1.3 billion, is cautious about opening up the market, such as a significant reduction in tariffs, and is said to hold the key to whether the negotiations will be concluded.

India is a trade deficit country, especially China, which has been exposed to cheap imports offensive, including a huge trade deficit of over $ 53 billion last year.

For this reason, if tariffs are reduced by RCEP and a large amount of cheap imported goods flows in, domestic industries may be seriously hit.

Among these, Mr. Bekawara, who runs a textile factory in Gujarat, India, said he was already exposed to severe competition with imported goods from overseas. “If India agreed with RCEP, "My business will fail if it gets imported more and more."

In consideration of these opinions, the Government of India has requested that the RCEP negotiate measures to automatically increase tariffs when large quantities of imported goods flow from China and other countries due to tariff reductions.