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Significance

Indonesia ratified RCEP late last year, paving the way for the pact to become effective for the country at the start of January. RCEP is now in force for 13 of its members.

Impacts

Differences between RCEP and bilateral FTAs in the region will probably convince participants to seek convergence on trade-related reforms.

A China-Japan-South Korea FTA, still a remote prospect, would reshape East Asian trade flows.

Chinese-US trade ties will weaken as China focuses more on doing business with its neighbours.

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