The Regional Comprehensive Economic Partnership (RCEP) is a free trade agreement (FTA), a type of international economic concept, signed by 15 Asia-Pacific nations on November 15, 2020. The agreement formally entered into force on January 1, 2022, for the first ten ratifying countries. The concept originated at the 2011 ASEAN Summit in Bali, Indonesia, with negotiations formally launching in 2012 in Cambodia. The primary objective was to establish a modern, comprehensive, and mutually beneficial economic partnership by broadening and deepening the existing ASEAN+1 FTAs with its six dialogue partners. The problem it solved was the lack of a single, unified set of trade rules across the region, which RCEP addresses by creating a single rulebook to facilitate regional supply chains.
The RCEP Agreement comprises 20 Chapters and covers areas like trade in goods and services, investment, intellectual property, e-commerce, and dispute settlement. A key mechanism is the commitment to eliminate approximately 92% of tariffs on imports between signatories over a period of 20 years. It also establishes unified Rules of Origin throughout the bloc, which is crucial for streamlining supply chains. Chapter 19 outlines the Dispute Settlement mechanism, providing rules and procedures for resolving disagreements under the Agreement.
RCEP connects to the Association of Southeast Asian Nations (ASEAN), which is central to the agreement, and the existing FTAs ASEAN has with its partners: Australia, China, Japan, South Korea, and New Zealand. India was an original participant in the negotiations but decided to withdraw in 2019 due to concerns over potential harm to domestic manufacturers and farmers from tariff liberalization, inadequate safeguards, and weak rules of origin. The agreement has not been replaced or amended since its signing, but the final text explicitly includes a provision, affirmed in the Ministers' Declaration on India's participation, that leaves the door open for India to join at a later date.