How does RCEP aim to boost post-pandemic economic recovery?

Question

Accepted Answer

RCEP Aims to Facilitate Post-Pandemic Economic Recovery Through Tariff Reduction and Services Trade Liberalisation

The Regional Comprehensive Economic Partnership (RCEP) is designed to stimulate economic recovery among its signatory nations following the global pandemic. The agreement aims to achieve this by lowering trade barriers, specifically through tariff reductions and the opening up of the services sector across the bloc. Many member countries are currently grappling with severe COVID-19 outbreaks, and they anticipate that RCEP will help to mitigate the significant economic damage caused by the pandemic, thereby fostering positive economic growth.
Lowering Tariffs and Opening Services Trade

RCEP seeks to enhance economic activity by reducing tariffs on goods traded between member countries. Furthermore, it aims to liberalise the services trade, making it easier for businesses to operate and expand across national borders within the partnership. This coordinated approach to trade is expected to streamline export processes, allowing companies to ship products to any RCEP member without needing to comply with distinct regulations in each individual country, thereby reducing costs and operational complexities.
Mitigating Economic Costs of the Pandemic

The agreement is particularly relevant as many signatories are experiencing severe coronavirus outbreaks that have severely impacted their economies. For instance, Indonesia recently entered its first recession in two decades, and the Philippine economy saw an 11.5 per cent contraction in a recent quarter. By establishing a more integrated and predictable trade environment, RCEP is intended to help these nations recover from the economic shockwaves of the pandemic and to support a return to positive economic growth.
Facilitating Positive Economic Growth

The impetus for RCEP's finalisation has been heightened by the pandemic, which has underscored the importance of international trade for economic resilience. As noted by experts, governments are now more eager than ever to achieve positive economic growth, and RCEP is seen as a mechanism that can help deliver this outcome. The pact, covering 2.1 billion people and approximately 30 per cent of global GDP even without India, is anticipated to create a more conducive environment for businesses to thrive and contribute to regional economic expansion.

Reading history

Hide →

This history is cleared when the page is closed.

How does RCEP aim to boost post-pandemic economic recovery?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends