No Urgency for RCEP as US Not Likely to Ratify TPPPosted: September 7, 2016
US has concluded Trans-Pacific Partnership (TPP) in order to exclude China by its stringent rules, but China is conducting reform to meet such rules; therefore, China’s real objective in taking initiative in establishing the Regional Comprehensive Economic Partnership (RCEP) is not to counter TPP.
However, the TPP excludes not only China but also quite a few other countries, especially India, by its stringent rules; therefore, it is India and other excluded nations that have urgent desire to have RCEP to counter TPP.
China, however, has already had free trade agreement with ASEAN, South Korea, Australia and New Zealand. The only two countries it has no such agreement are Japan and India. China does not have such urgent need for RCEP than India and other countries.
SCMP’s report today titled “Asian nations will fail to met deadline to end negotiations on new trade pact: sources” seems to mean that China is in trouble due to the delay of the trade pact. In fact no one is in trouble as US congress and both Republican and Democratic president candidates are against TPP. The delay is in fact due to the lack of urgency in concluding the deal to counter TPP. If TPP fails, RCEP may also fail.
Comment by Chan Kai Yee on SCMP’s report “Asian nations will fail to met deadline to end negotiations on new trade pact: sources”, full text of which can be viewed at http://www.scmp.com/news/china/diplomacy-defence/article/2017135/asian-nations-will-fail-met-deadline-end-negotiations.