The Regional Comprehensive Economic Partnership (RCEP) is a free trade agreement (FTA), a type of international treaty, among 15 Asia-Pacific nations, including the ten member states of ASEAN plus Australia, China, Japan, South Korea, and New Zealand. Signed on November 15, 2020, it is the world's largest trade bloc, covering approximately 30% of the global Gross Domestic Product (GDP) and population.
The concept was introduced at the 2011 ASEAN Summit in Bali, Indonesia, and negotiations formally launched at the 2012 ASEAN Summit in Cambodia. The primary goal was to consolidate and deepen economic engagement by building upon the existing network of ASEAN+1 FTAs with its six partners. The agreement entered into force on January 1, 2022, for the initial ten ratifying countries.
RCEP works by establishing a single set of trade rules across the region, contained within 20 Chapters. A key mechanism is the unified Rules of Origin, which simplifies supply chains by allowing components sourced from any member state to qualify for preferential access across all RCEP markets. The agreement aims to eliminate about 92% of tariffs on traded goods over a period of 20 years.
The RCEP is often connected to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) as a parallel mega-regional trade pact. India was an original negotiating partner but opted out in November 2019 due to concerns over market access, potential for cheap imports from China, and the impact on domestic industries like dairy. The agreement includes a provision, in Chapter 20, that allows India to accede to the pact at any time without having to wait the standard 18 months after its entry into force.