MBA 602 International Business Section: 960
IB News Article
Japan Dives into Trade Talks
ASEAN leaders begin RCEP negotiations
An effort is being negotiated currently to launch a new regional comprehensive economic partnership called RCEP. The concept is this: to engage 16 Asia Pacific nations for free trade and to establish a trilateral free trade agreement with China and South Korea.
Negotiations in this landmark free trade pact are taking place now in Phnom Pehn following the ASEAN Summit. If or once it is formed the RCEP is likely to cover half of the world’s population and would be the largest regional trading arrangement in the world to date. The RCEP is a strategy aimed at maintaining regional growth by ensuring that markets of the participating countries remain open and competitive.
It is estimated that Japan’s GDP will grow by 1.1 percent with a wide ...view middle of the document...
The barriers are the economic gap between the 16 potential members: GDP $67,000 - $804 and differences in economic activity.
The US-led TPP which stands for Trans-Pacific Partnership, On November 12, 2011, the Leaders of the nine TPP countries – Australia, Brunei Darussalam, Chile, Malaysia, New Zealand, Peru, Singapore, Vietnam, and the United States – announced the achievement of the broad outlines of a 21st-century Trans-Pacific Partnership (TPP) agreement that will enhance trade and investment among the TPP partner countries, promote innovation, economic growth and development, and support the creation and retention of jobs.
China has been reluctant to seek admission in the TPP preferring to focus on free trade arrangements centered in Asia where it would have greater influence. Meanwhile, the United States called a meeting of members of the TPP on the sidelines of the ASEAN-organized summit in a clear effort to speed up its own free-trade talks. The meeting was called just before the 10-nation ASEAN bloc and leaders of China, Japan, South Korean, India, Australia and New Zealand met to discuss the RCEP agreement. The indication here is that the desire is intense for the US to push the TPP ahead.
In conclusion there are many players here jockeying for position concerning free trade packs in the Asia market.
APEC is the premier Asia-Pacific economic forum. The goal is to support sustainable economic growth and prosperity in the Asia-Pacific region by championing free and open trade and investment, promoting and accelerating regional economic integration, encouraging economic and technical cooperation, enhancing human security, and facilitating a favorable and sustainable business environment.
Papua New Guinea
United States of America
The Association of Southeast Asian Nations
the ten Member States of ASEAN.