The move was one of the highlights of the 21st ASEAN Summit and Related Summits in Phnom Penh, Cambodia.
The idea was first mooted at the 19th ASEAN Summit in November 2011, when
leaders of the ten ASEAN Member States adopted the ASEAN Framework for Regional
Comprehensive Economic Partnership, which sets out the general principles for
broadening and deepening ASEAN’s engagement with its FTA Partners. This
important milestone signaled the determination and commitment of ASEAN to play
the lead and central role in the emerging regional economic architecture.
The significant progress made in ASEAN’s FTAs with China (ACFTA), Japan
(AJCEP), Korea (AKFTA), India (AIFTA), and Australia and New Zealand (AANZFTA)
has put these trading partners in a position to bring to a higher level their
economic partnership by negotiating a comprehensive economic partnership that
would lead to the creation of an integrated market that spans 16 countries with
a combined market of over 3 billion people and a combined GDP of about US$
19.78 trillion based on 2011 figures. The RCEP would be the largest regional
trading arrangement to this day.
“With the region accounting for more than half of the global market and
about a third of the global economic output, there is no doubt that a
successful RCEP would significantly contribute and boost global trade and
investment,” said Dr. Surin Pitsuwan, Secretary-General of ASEAN.
The landmark event in Phnom Penh comes at a time when economic recovery
efforts continue to be seriously challenged by the volatile global financial
and economic situation. With the launch of RCEP negotiations for a modern,
comprehensive, high-quality agreement, the RCEP is a strategic move aimed at
keeping the momentum of growth in the region by ensuring that markets of the
participating countries remain open and competitive.
RCEP negotiations are expected to commence in 2013. Leaders also endorsed
the Guiding Principles and Objectives for Negotiating the Regional
Comprehensive Economic Partnership, adopted by their Economic Ministers in Siem
Reap in August 2012. Based on the said Guiding Principles, the RCEP – although
to be initially negotiated by ASEAN and its existing FTA partners – would allow
the region’s economic partners to eventually accede into the agreement.
The RCEP is also expected to include economic and technical cooperation
that would allow all parties, regardless of their level of development, to
maximize the opportunities made available by deeper and broader economic
engagements.
(thailand.prd.go.th)