Economic Agreements

Southeast Asia will benefit greatly from RCEP ($19 billion per year by 2030), but less than North-East Asia, as it already has free trade agreements with RCEP partners. But the RCEP could improve access to funds from china`s Belt and Road Initiative (BRI) and improve the benefits of market access by strengthening transport, energy and communication links. RCEP`s favourable rules of origin will also attract foreign investment. Proponents of economic partnership agreements argue that the agreement will benefit all parties in the same way in the long run. By removing barriers to trade and people, each economy in the agreement can take advantage of the other benefits of the market. In addition to economic ties, economic partnerships can strengthen political relations and build strong allies in times of political upheaval or military action. Economic partnership agreements are intensive alliances that are signed by two or more countries and guarantee mutual economic integration and participation. The agreements proved very popular around the world at the beginning of the 21st century, with the nations of Europe, Asia, Africa and the Pacific united to survive and compete in a turbulent international economic context. Despite the potential tensions between the two approaches, it appears that multilateral and bilateral/regional trade agreements will remain characteristics of the global economy. However, both the WTO and agreements such as NAFTA are controversial among groups such as alter-globalists, who argue that such agreements serve the interests of multinationals and not workers, while free trade was a proven method of improving economic performance and increasing overall income. To counter this opposition, pressure has been exerted for labour and environmental standards to be included in these trade agreements. Labour standards contain provisions relating to the minimum wage and working conditions, while environmental standards would prevent trade if there were fears of environmental damage.

The European Commission reports annually on the implementation of its main trade agreements in the previous calendar year. U.S. policy in Asia must adapt to changing East Asian realities and recognize China`s growing role, the growing integration of ASEAN and the diminishing relative economic influence of the United States. USTR is primarily responsible for the management of U.S. trade agreements. These include monitoring the implementation of trade agreements with the United States by our trading partners, the application of U.S. rights under those agreements, and the negotiation and signing of trade agreements that advance the President`s trade policy.