Regional Comprehensive Economic Partnership

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Regional Comprehensive Economic Partnership
Although there have been various benefits associated with Trade Blocs for the member countries, these organisations tend to limit global trade. Protectionists seek Trade Blocs mainly due to their inability to compete with prices in the global market. Presently, in the race of creating the world’s largest trade bloc, China seems to be taking the lead. The RCEP encompassing 16 countries were founded in 2012. The body includes countries like Japan, Australia, China, New Zealand, India, Korea, and the ASEAN Countries. The partnership has proven to be a strong force paving the way for trade liberation in regions that have a strong influence on the overall economic growth of the globe (Lissovolik, n.p). The new mega trade bloc does not only comprise of powerful nations but also would be aggregating several Free Trade Agreements (FTA) between ASEAN Countries.
Regarding business, the RCEP would reduce trade barriers between the countries of the trade bloc, as it would help streamline processes for the businesses in these countries. According to Lissovolik (n.p), aspects like customs, trade-related infrastructure, and trade quotas could be unified for these countries. The trade bloc would also increase the ease of doing business within the region hence making the RCEP and the ASEAN countries an excellent investment and business choice for the other countries.
As proven by the Economic Research Institute of Asia and East Asia, it has been concluded that ASEAN countries by being members of the RCEP would benefit more than if they were to be single countries with unilateral or bilateral Free Trade Agreements.

Tariff cuts and Tariff timelines have been abolished in the RCEP countries thereby reducing business costs. RCEP being a strong economic force in the present global scenario has the potential of becoming the largest trade bloc (Lissovolik, n.p). This aspect will make the Asian countries highly profitable, attractive to new markets, and reduce costs of business.
Work cited
Lissovolik, Yaroslav. “The race is on to secure the world’s biggest trading bloc – and China is leading the way.” World Economic Forum, 2018. Retrieved from: https://www.weforum.org/agenda/2018/08/the-race-is-on-to-secure-the-world-s-biggest-trading-bloc-and-china-is-leading-the-way-eceb94cb-f196-4130-95f8-36bb820a240e. Accessed 15 Sept 2018.