Regional Comprehensive Economic Partnership

The Regional Comprehensive Economic Partnership (RCEP) was signed by 15 countries yesterday (15 Nov), which provides progressively lower tariffs across many areas in the coming years.

It’s the world’s biggest trade agreement involving 10 ASEAN countries along with China, Japan, South Korea, New Zealand and Australia. Together, the 15 countries make up nearly a third of the world’s population and account for 29 per cent of global GDP.

PM Lee hailed the signing of the RCEP as a major milestone. He said yesterday, “The RCEP is a major step forward for the world, at a time when multilateralism is losing ground and global growth is slowing… I have no doubt that the RCEP is a plus for all of us.”

However, 6 ASEAN and 3 non-ASEAN countries have yet to officially ratify the mega agreement. RCEP will only come into force when these countries have ratified the agreement through their respective parliamentary process of their countries.