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Subject

The Regional Comprehensive Economic Partnership.

Significance

Shortly after Donald Trump was sworn in as US president on January 20, his administration announced withdrawal from the Trans-Pacific Partnership (TPP) trade agreement. This leaves the Regional Comprehensive Economic Partnership (RCEP), which unlike TPP includes China, as Asia's most ambitious planned regional trade agreement. The RCEP encompasses North-east Asia, South-east Asia, India, Australia and New Zealand. It has so far received less attention than the larger, more comprehensive TPP, but is now more likely to happen.

Impacts

The TPP's collapse leaves China as the leader of large-scale regional economic integration, with the RCEP as the main pillar.

The RCEP will probably be more open to new members than the TPP would have been.

The RCEP may enhance the regional and global role of China, potentially contributing to bilateral rivalry with the United States.

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