Saving Potential of Regional Comprehensive Economic Partnership (RCEP): Implication for China and Japan

Abstract

ASEAN community and six ASEAN FTA partners' leaders have engaged in strengthening economic development within the region by establishing RCEP. ASEAN had signed trade agreements with all the other six FTA partners. The other six ASEAN trading partners within RCEP have no free trade agreements yet among them. Therefore, the RCEP is involved in tough negotiation among the six non-ASEAN member countries. RCEP commitment is established through ASEAN as a catalyst. This study will examine the total saving potential of free trade agreement by using ex-ante FTA analysis and the political implication of RCEP for non-ASEAN member countries, especially Japan and China. The impact of RCEP will be insignificant without China and Japan existence. These two countries are essential to be maintained in the RCEP initiatives. The six non-ASEAN members in RCEP are finding ways to exploit the balance benefit among them. China-Japan relations will be embedded in the RCEP association if RCEP is concluded. From an economic perspective, Japan and China seem to have strong economic interdependence. From a political perspective, both countries have long history relations, distrust, and mistrust. Therefore, economic interdependence could be the way forward for both countries to have a harmonious relationship. Japan and China need ASEAN and other RCEP members to tighten the economic and political relations among them.

The role of trade liberalization in promoting regional integration and sustainability: The case of regional comprehensive economic partnership

“…In terms of the demographic structure, Japan and South Korea are experiencing increasing population aging, making them need more young and cheap labor forces to fill the labor shortage gap, but this problem can be alleviated by investing in China to build factories (e.g., References [ 92 ]). From the perspective of industrial structure, the electronics manufacturing and automobile manufacturing industries of Japan and South Korea are highly complementary to China’s domestic, and even China would become a destination for further industrial transfer of high-end industries in Japan and South Korea (e.g., References [ 93 ]). Therefore, the agreement would unprecedentedly strengthen the economic cooperation between China, Japan, and South Korea (e.g., References [ 94 ]).…”

The Effect of Joining Free Trade Union on Export and Import in ASEAN Countries

“…This union is expected to be in line with some economic cooperation of ASEAN with partner countries such as Regional Comprehensive Economic Partnership (RCEP). RCEP which members are AMS and six non-member countries provides good trade results and maintains harmonious political relation for RCEP member countries such as China and Japan (Wardani & Cooray, 2019). Considering that this study does not focus on issues related to the formation of customs union and ASEAN cooperation with partner countries, these issues can be addressed by future research.…”

The Regional Comprehensive Economic Partnership (RCEP) for the Asia–Pacific region and world

“…RCEP commitment is developed via ASEAN as a catalyst. Wardani and Cooray (2019a) investigated the entire saving potential of free trade agreement by employing ex ante FTA analysis and the political consequence of RCEP for non-ASEAN member nations, notably Japan and China. The influence of RCEP will be small without China and Japan existing.…”