IN the face of escalating trade tensions between Japan and South Korea, negotiators of the Regional Comprehensive Economic Partnership (RCEP) are poised to conclude the trade deal by November after resolving over two-thirds of market access issues.
Trade ministers of RCEP negotiating countries over the weekend disclosed three annexes of the agreement were concluded by the Trade Negotiating Committee (TNC). With this, the trade deal now has seven concluded chapters and three concluded annexes.
“The ministers, in particular, welcomed the conclusion of the annexes on telecommunication services, financial services and professional services, bringing a total number of seven concluded chapters and three concluded annexes, and noted that some of the remaining chapters or annexes are nearing conclusion,” trade ministers said in a joint statement.
At present, over two-thirds of market access negotiations were completed. Market access negotiations are the most difficult to conclude since they deal with tariff rates, concessions, and sensitive products and services of the parties.
“The ministers were pleased to note that over two thirds of market access negotiations have reached mutually satisfactory outcomes, and that work on the remaining areas are being intensified through constructive engagements at all levels,” the trade ministers added.
They also called on RCEP parties to resolve remaining trade issues, as this will be crucial in fulfilling the target of finalizing the trade deal by November. Japan and South Korea, negotiators of the RCEP, have been engaged in a trade conflict the past weeks, with Tokyo’s decision last Friday to revoke South Korea’s preferential status as a supplier of military arms being the latest move.
“Determined to keep the momentum toward achieving the leaders’ mandate to conclude the RCEP negotiations by the end of the year, the ministers called on all [RCEP negotiating parties] to find pragmatic and solution oriented approaches to narrow divergence on various remaining issues,” the trade ministers said.
In a statement, Trade Secretary Ramon M. Lopez said significant progress has been made in discussions on key chapters of the RCEP. He added that negotiators are becoming more flexible and pragmatic with their demands in the trade deal, which should help speed up the talks.
“Parties are more pragmatic in the spirit of wanting to reach conclusion. We are seeing more flexibility and they are more mindful of the sensitivities of each country, taking into account the level of its economic development,” Lopez said.
“With the competitive advantage of our country in resources, people and business environment, we hope to enhance our trade relations with other countries, and build more local industries and create more jobs,” he added.
The RCEP is one of the world’s largest trade agreements. It is negotiated by member-states of the Association of Southeast Asian Nations, Australia, China, India, Japan, New Zealand and South Korea.
Last year RCEP economies accounted for nearly half of the world population, 32.2 percent of the global economy, 29.1 percent of global trade and 32.5 percent of global investment inflow. The trade deal covers trade in goods, trade in services, investments, intellectual property, movement of people, electronic commerce, dispute settlement, among others.