Moving ASEAN+1 FTAs towards an Effective RCEP

Summary

EXECUTIVE SUMMARY

1. • ASEAN and six other nations (Australia, China, India, Japan, Korea and New Zealand) are launching the RCEP negotiations in Brunei in early May 2013, with the likelihood of completion by the end of 2015.

2. • Currently, the five ASEAN+1 FTAs in existence are significantly different from each other. The RCEP is expected to be a high-quality FTA holding significant improvements over these FTAs.

3. • There are eight areas for RCEP negotiations — trade in goods, trade in services, investment, economic and technical cooperation, intellectual property, competition, dispute settlement, and other issues.

4. • The RCEP, if successfully negotiated, is likely to generate a GDP of US$26.2 trillion (32 per cent of the world), effecting about 3.5 billion people (48 per cent of the world population).

5. • It will further entrench ASEAN Centrality and demonstrate ASEAN's capability to bring together its own ten members and external partners for economic growth, development and harmonisation.

INTRODUCTION

Significantly, ASEAN adopted the Regional Comprehensive Economic Partnership (RCEP) framework in November 2011. This will join its ten members with six nations — Australia, China, India, Japan, Korea and New Zealand — that are currently enjoying five separate FTAs with ASEAN as a whole. Since then, three ASEANPlus Working Groups have been set up on trade in goods, services, and investment. During the November 2012 Summit, the Leaders of ASEAN+6 endorsed principles that stipulate that RCEP will be a modern, comprehensive, high-quality and mutually beneficial FTA. It will aim for significant improvements over the existing ASEAN+1 FTAs and will give due consideration to the differing levels of development among members. The Guiding Principles also list eight negotiation areas — trade in goods, trade in services, investment, economic and technical cooperation, intellectual property, competition, dispute settlement, and other issues. The Leaders decided to launch negotiations in May 2013 in Brunei, with the likelihood of completion by the end of 2015.