Is the RCEP competition for the TPP?
- By Mei Xinyu
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E-mail China.org.cn, April 18, 2014
While the RCEP is progressing smoothly, Japan and the United States still have huge differences after marathon talks over key matters in the Trans-Pacific Partnership (TPP) free trade negotiations. The U.S. Trade Representative Michael Froman left Tokyo empty-handed on April 10, clouding the outlook for reaching a broad agreement during a U.S.-Japan summit in Tokyo later this month.
Rather than replacing the existing APEC and other regional economic integration organizations, the RCEP will be only one of several Asia-Pacific regional fora. APEC lacks the formal bureaucratic structure which typifies most regional groups and international organizations. And it is organized on a consensus basis, so it won't strongly affect the economies of its member countries. Its drawback is the inevitable lack of supervision and incentives for each member in the implementation of trade and investment liberalization. With more sub-regional/bilateral free trade agreements, countries in the region can choose an economic integration organization according to their practical situation.
China is an active promoter of regional comprehensive economic partnership negotiations. In recent years, bilateral trade between China and RCEP member countries has grown much faster than the average growth rate of China's foreign trade. China has benefited from the huge trade development potential in East Asia. It is willing to share the growth potential with its trade partners.
From the day the RCEP was initiated in November 2012, it has been frequently described as China's move to rival the TPP. There's no deny that competition does exist between the two blocs. However, China has always considered peace and development to be the overriding issues in today's world. Rather than a fight to the death, a friendly rivalry between RCEP and TPP will pave the way to a more comprehensive trade arrangement in Asia.
The author is a researcher at the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce.
The article was translated by Li Huiru. Its original version was published in Chinese.
Opinion articles reflect the views of their authors, not necessarily those of China.org.cn.
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