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Showing posts with label Regional Comprehensive Economic Partnership (RCEP). Show all posts
Showing posts with label Regional Comprehensive Economic Partnership (RCEP). Show all posts

Saturday, November 21, 2020

RCEP to boost our property market

RCEP will promote and facilitate international trade among the 15 participating countries in the Asia-Pacific region and the expected increase in free trade will have a significant impact on the Malaysian property market. -NST/file pic.

The signing of the Regional Comprehensive Economic Partnership (RCEP) signifies the world's largest trade agreement and will contribute towards sustaining Malaysia as a preferred trading hub and investment destination.

RCEP will promote and facilitate international trade among the 15 participating countries in the Asia-Pacific region and the expected increase in free trade will have a significant impact on the Malaysian property market.

Higher trade and economic activities will impact on the occupation, investment and development sectors of the property market. Real estate space is a local input in the production and supply of goods and services. Increased exports lead to the expansion of domestic production.

Increased domestic production increases the demand for industrial space. Imports also have an impact on demand for real estate space. Goods imported need to be stored and distributed through warehouses and logistic properties.

These goods are then displayed and marketed at various outlets points thereby increasing the demand for retail spaces in retail malls.

Regional trading bloc and trade liberalisation will encourage foreign direct investments (FDI). These FDIs will create demand for industrial land and buildings. New capital investments will spur demand for more financing activities from the banks.

Once the plants and machines are in operations, it will create employment and demand on other factors of production. Higher economic growth will drive the capital market which will attract more foreign investment fund flows investing into local equities.

With increased economic activities, occupation demand for real estate space will cause rental increase. With inelastic new supply, potential future rental growth and prospective capital appreciation, investors will start to invest in real estate leading to an active investment market with the more participation from the institutional investors.

Developers will react to prevailing rents and capital values when they appear to signal a profitable opportunity. If prices rise, more developers will respond to these signals, the aggregate flow of supply into the market increases.

These new spaces will meet the requirements of the occupiers and investors e.g. floor plate size, specification and network connectivity requirements

Real estate service providers such as property consultants played an important role in the whole process by aligning their service standards to the requirements of the regional and global clients.

It is envisioned that the RCEP will open up markets and help in the recovery post Covid-19 pandemic. With increased economic activities, it will give rise to more derived demand for various real estate spaces thereby leading to an improved property market performance in the future.

DR. TING KIEN HWA

Professor of Property Investment

Centre of Real Estate Studies

Faculty of Architecture, Planning & Surveying

Universiti Teknologi MARA


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Wednesday, November 18, 2020

RCEP puts Malaysia on par with super economies





Azmin showing the RCEP agreement document during the signing ceremony witnessed by Muhyiddin on Nov 15. – fotoBERNAMA\


 ON behalf of the Government of Malaysia, I signed the historic Regional Comprehensive Economic Partnership (RCEP) agreement together with 14 other RCEP participating countries (RPCs).

Being an integral part of the week-long 37th Asean Summit, led by Prime Minister Tan Sri Muhyiddin Yassin, the signing of the RCEP agreement represents the high point of the summit which was convened virtually in its entirety.

Witnessing this momentous occasion, the prime minister said that the signing signifies to the world that Asean, with its five Free Trade Agreement (FTA) partners, places utmost priority on regional economic integration that facilitates cross-border trade, investments and the easing of non-tariff measures.

The signing is the culmination of eight years of arduous and protracted negotiations involving 31 rounds of negotiations, eight ministerial meetings and four summits.

Undoubtedly, it represents a significant and imperative milestone in the integration and revitalisation of economies of the 15 parties.

Further, this will also be a testament to the strengthening of the multilateral trading system as well as upholding the development agenda in the WTO.

Being the largest FTA in the world, covering 15 countries with 2.2 billion people or nearly a third (29.7%) of the world’s population, RCEP represents US$24.8bil or almost a third (28.9%) of the world’s GDP based on World Bank’s 2018 data.



With different economic development levels of all parties, RCEP will contribute to sustaining Malaysia as a preferred trading hub and investment destination.

To Malaysian businesses, it will mean tariff elimination and reduction for merchandise goods, including the facilitation of export and import of goods among the RCEP countries.

Service providers including e-commerce will be able to enjoy greater market access in terms of cross-border supply and establishing commercial presence in the RCEP markets.

In addition, RCEP will promote, facilitate and protect the investment climate of participating countries within the region. This also includes information exchange and promotion of transparency measures to facilitate business and investment within the RCEP area.

Realising that SMEs play a pivotal role to the backbone of every economies, RCEP could provide a level playing field between developed and least developed countries.

There is a specific chapter on SMEs providing provisions for information exchange and promotion of transparency measures to facilitate business and investment within the region, including providing economic and technical cooperation especially to SMEs.

RCEP can be an economic recovery tool against Covid-19 which will help to ensure opening of markets as well as uninterrupted supply chain.

The RCEP amalgamates and streamlines the existing Asean Plus One FTAs involving Japan, South Korea, China, Australia and New Zealand into an inclusive and comprehensive agreement that will enhance inter and intra-regional trade and investment, strengthen regional value chains, as well as facilitate transparency, information sharing and harmonisation of technical regulations and standards.

RCEP reflects our strong commitment for international trade, connectivity, rules-based multilateral trading system and enhancing free flow of trade and investment.

Datuk Seri Mohamed Azmin Ali Senior Minister Minister of International Trade and Industry

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Sunday, November 15, 2020

Asia-pacific 15 economies signed world's biggest free trade agreement: RCEP without US

 

 


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China and 14 other economies signed the world's largest trade deal, the Regional Comprehensive Economic Partnership (RCEP), on Sunday to form a free trade zone in the Asia-Pacific region that will encompass a third of the global economy, in what Chinese officials and experts call a historic win for multilateralism that would help the regional and global economies cope with the COVID-19 pandemic and rising protectionism.

Chinese Premier Li Keqiang said that signing of the RCEP is not only an achievement of landmark significance in East Asian regional cooperation, but is also a victory of multilateralism and free trade.

"Signed after eight years of negotiation, the RCEP lets people see brightness and hope in shadows, proving that multilateralism and free trade remain the main and correct course as well as the right direction for the global economy and mankind," Li said.

Signed at a critical turning point in the global political climate – when the next US administration is set to come into office and the world is grasping for solutions to tackle challenges arising from the coronavirus pandemic, the new regional deal would also help the Asia Pacific region take the global lead in recovering from the COVID-19 pandemic and reduce US hegemony in the region, experts said.

The deal, which encompasses Japan, China, South Korea, Australia and the 10 members of the Association of Southeast Asian Nationals, will create what is believed to be the world's largest free trade zone, covering about one-third of the world's total population and GDP. It will be also Japan's first free trade framework with its vital trading partners China and South Korea.

Notably, two major economies – the US and India – were left out of the trade pact. The US, under President Donald Trump, has been pushing for bilateral deals rather than multilateral ones. India was part of the negotiations, but did not join the final agreement.

The RCEP, which contains 20 chapters covering a wide range of areas from merchandise trade to investment to e-commerce, is “modern, comprehensive and high-level win-win agreement,” China’s Finance Ministry said on Sunday, adding that under the deal, members will aim to reduce tariffs to zero in the coming decade.

Bao Jianyun, professor of the School of International Studies and director of the Center for International Political Economy Studies at Renmin University of China, said that signing of the RCEP showed China, which played a very active role in pushing for the deal, has led the way in liberalizing trade and promoting a global market order of free competition.

"At the same time, China provides the world with a Chinese model and a Chinese solution on the open platform, where it serves the world," Bao told the Global Times, explaining that China as an emerging power has been a major promoter of trade and investment integration of RCEP.

Chen Fengying, a research fellow at the China Institutes of Contemporary International Relations, also stressed that the successful and long-awaited signing of the megapact has rekindled the world's 'hope and confidence" about a model of cooperation.

"Global cooperation has been defeated in recent years because of rising protectionism and China-US trade friction. But the RCEP's signing is a signal that cooperation does work today, which I think is even more important withthe lift it gives to specific countries' GDP growth," Chen told the Global Times.

Liu Kuikui, a Beijing-based consultant of international transport and trade, told the Global Times that the RCEP will establish a common framework of rules of origin for Asia-Pacific countries, reduce investment barriers, and expand trade and investment. The participation of Japan, South Korea, Australia and New Zealand, allies of the US, demonstrates that the four countries are opposed to the trade protectionism and the economic bullying launched by the US.

Signing of RCEP a victory of multilateralism and free trade: Chinese Premier Li Keqiang RCEP will end US hegemony in West Pacific Not joining RCEP a strategic blunder that will lead to India’s isolation in globalization 

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Tuesday, May 6, 2014

Making sense of China’s Asia-Pacific FTA agenda


IN A surprise move, the Chinese government announced on April 30 that it will explore the possibility of pushing ahead the long-delayed Asia-Pacific Free Trade Agreement (FTAAP) in the coming Asia Pacific Economic Cooperation (Apec) meeting this year. To that, Beijing is mulling a working group to study the feasibility of the Pacific-wide free trade pact which is scheduled to be discussed among Apec trade ministers in the May forum.

In light of Obama's conclusion of his Asia trip without much achievement on the Trans-Pacific Partnership (TPP) agenda, Beijing's latest move is a clear response to Washington's "economic containment" of China in the form of TPP—a suspicion that is shared by many analysts worldwide. Nevertheless, considering China's multi-level and often complicated decision-making process, Beijing's latest overture is definitely more than just a timely response. In fact, it is a strategic response aimed to achieve strategic goals in both external and internal dimensions.

First, Beijing's FTAAP move is a departure from Hu-Wen administration's policy on the Pacific trade agreement. Whereas the previous administration's stance on this matter is both ambiguous and non-committal, the current Xi-Li leadership has obviously abandoned such a policy to the point that it is willing to push the FTAAP agenda as Apec host this year. Exerting such a leadership when the credibility of Apec as the framework for achieving Asia-Pacific economic community is being questioned, is a show of China's aspiration for a global role that commensurate its position as one of the world's economic power.

Second, Beijing's support for the FTAAP is a strategic counter to the US-led TPP which China does not belong to. Instead of focusing its sights on the Asean-centred Regional Comprehensive Economic Partnership (RCEP), Beijing is also looking at the FTAAP as its other tool to mitigate the adverse impacts arising from the TPP towards China, should the US-led trade pact successfully concluded. As FTAAP is the larger economic bloc that encompasses all 21 APEC members, pushing the proposal through will not just complement the TPP but also, absorb the 12-member TPP nations within the larger free trade bloc. This effectively puts China in the driving seat, seizing the global free trade initiative away from the US and breaking the TPP-induced predicament on Beijing.

Third, China's push for the FTAAP agenda will mean that the RCEP is firmly established as the other cornerstone of the nation's free trade policy. Simultaneously, such a decision will cast away any possibility of Beijing entering the TPP as some analysts have hope for.

From the statement made by the Chinese commerce ministry days ago, China is planning to utilise certain aspects of both the TPP and the RCEP frameworks, to be the building blocks for the eventual free trade pact in the Asia-Pacific region. By that, it means that the FTAAP, if it is successful, will not be the high quality FTA or Economic Partnership Agreement (EPA) as the TPP, but rather, a modest version between the TPP and the RCEP. In the long-run, this is more beneficial to China as it puts the country in a gradual course of economic opening up unlike the situation in the TPP.

Finally, Beijing is employing the FTAAP as an external force to speed up reforms at the domestic front. With the FTAAP poised to be a higher quality of FTA vis-à-vis the China-Asean Free Trade Area, it is expected that substantial rules and regulations will be rolled out to overcome the numerous tariff and non-tariff barriers as well as investment hurdles among participating nations. For China, the FTAAP can be a force used by the government to break the monopolies of state-owned enterprises in the telecommunications, banking and transport sectors, just to quote a few. With economic reform being the most important agenda for the leadership, the Xi-Li administration is borrowing the external force in the form of FTAAP, to further liberalise its economy and, thus, spur China into a more sustainable economic development in the coming years.

What is needed by China, however, will be policy consistency and close collaboration with Washington to push the FTAAP agenda through. Just as half-baked efforts will not produce any tangible results as shown during the Bush administration, pushing through a FTAAP that is more accommodative to the developing world may not work as well in this case. Close lobbying with the US and other developed countries is vital if Beijing is to push through the FTAAP agenda in Apec.

- Contributed Karl Lee CROSS BORDERS theSunDaily

Karl Lee is an analyst at Anbound Malaysia, the leading independent think tank in Mainland China. Feedback: lcleong@anbound.com.

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Saturday, November 24, 2012

ASEAN plans world’s largest trading bloc in Asia, the Regional Comprehensive Economy Partnership (RCEP) and the U.S. Secrecy in Trans-Pacific Partnership (TPP)

The leaders of Asean have succeeded in persuading their top trading partners to start negotiations on the Regional Comprehensive Economic Partnership (RCEP) to create the world’s largest trading bloc.

Cambodian Prime Minister Hun Sen formally launched the negotiations on the RCEP during the Asean Summit and Related Summits yesterday at a meeting at the Peace Palace in the western part of Phnom Penh.

The leaders of the 10-member regional grouping and their six major trading partners agreed to create a trading bloc that will comprise more than three billion people and with a combined GDP of US$15 trillion, roughly equal to that of the US.

Asean also launched the US-Asean Expanded Economic Engagement initiative, aimed at expanding trade and investment ties with the US and smoothing a path for the Trans-Pacific Partnership.

Trade Minister Gita Wirjawan said that plans for the RCEP would be welcomed by world leaders from Australia, India and the US as an amazing tool of economic integration that might become the benchmark for other regions.

“The spirit is not that of a zero-sum game. The economic integration of other regions is complementary to the economic integration among [Asean] member countries,” Wirjawan told The Jakarta Post on the sidelines of the event.

“Many Asean member nations are conducting bilateral talks that are just fine, because they are complementary [to the RCEP],” Wirjawan said.

The minister has previously said that the RCEP would “rewrap” five current free trade agreements (FTAs) with Asean’s six major trading partners, China, Japan, India, South Korea, Australia and New Zealand.

Asean’s FTA with Australia and New Zealand covers both nations.

Wirjawan said that the prospects for the RCEP were currently brighter than of the Trans-Pacific Partnership (TPP) free trade agreement touted by the US, as Asean already had FTAs in place, albeit mostly on goods and tariffs, with most of the nations involved.

The RCEP will expand upon existing FTAs to include agreements covering services and investment.

Asean is currently in discussions to expand its FTA with India, which it expects to complete in time for the Asean-India Commemorative Summit next month in India. Similar negotiations will follow with Japan.

Earlier in the day, there was a global dialogue between Asean leaders with the heads of world financial institutions, including Asia Development Bank President Haruhiko Kuroda, IMF Managing Director Christine Lagarde, World Bank Managing Director Caroline Anstey, UN Conference on Trade and Development Secretary-General Supachai Panitchpakdi and World Trade Organisation Director-General Pascal Lamy.

Wirjawan said that the leaders agreed that Asean had shown itself to be resilient amid the global financial crisis, becoming a model for other economic zones.

“Also discussed were efforts to face financial crises, such as the Chiang Mai Initiative pool of funds, which has been increased from $120 million to $240 million,” Wirjawan said.

Another important decision that was made during meetings and summits in Cambodia between November 15 and 20 was to start additional talks on implementing the Asean Economic Community on Dec. 31, 2015, to aid member nations in their preparations.

Asean’s leaders also adopted the Asean Human Rights Declaration, despite critics who said that the document was not up to universal standards of human rights protection, promotion, monitoring and enjoyment.

At the end of the closing ceremony, Hun Sen presented the gavel to Brunei Darussalam Sultan Hassanal Bolkiah to mark the handover of Asean’s rotating chair from Cambodia to Brunei starting on January 1.

Bolkiah said it would be the fourth time that Brunei would hold Asean’s chair, and that the nation had chosen a motto of “Our People, Our Future Together” for Asean for 2013.

Asean Secretary-General Surin Pitsuwan of Thailand also brought to an end to his term. He will be replaced by Vietnamese deputy foreign minister Le Luong Minh, who has been endorsed by Asean’s member nations.
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An alternative to US President Barack Obama’s Trans-Pacific Partnership, the 16-member Regional Comprehensive Partnership (RCEP) is the newest concept for an economic union between ASEAN and six major trading partners, China, Japan, India, South Korea, Australia and New Zealand.

The RCEP is supposed to be a trading bloc that will comprise more than three billion people with a combined GDP of $20 trillion, or almost one-third of the global economy. Officials hope to have the talks concluded by the end of 2015.

Source: Investvine
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Association of Southeast Asian Nations

The First ASEAN summit was held in February 1976 in Bali.

The most recent 21st Summit was held from November 18-20, 2012 in Phnom Penh, Cambodia
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Video: ASEAN agenda


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Video: Opening Ceremony of the 21st ASEAN Summit


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Trans-Pacific Partnership

On November 12, 2011, the Leaders of the nine Trans-Pacific Partnership countries – Australia, Brunei Darussalam, Chile, Malaysia, New Zealand, Peru, Singapore, Vietnam, and the United States – announced the achievement of the broad outlines of an ambitious, 21st-century Trans-Pacific Partnership (TPP) agreement that will enhance trade and investment among the TPP partner countries, promote innovation, economic growth and development, and support the creation and retention of jobs.

INCREASING AMERICAN EXPORTS, SUPPORTING AMERICAN JOBS

President Obama announced in November 2009 the United States’ intention to participate in the Trans-Pacific Partnership (TPP) negotiations to conclude an ambitious, next-generation, Asia-Pacific trade agreement that reflects U.S. priorities and values. Through this agreement, we are seeking to boost U.S. economic growth and support the creation and retention of high-quality jobs at home by increasing American exports to a region that includes some of the world’s most robust economies and that represents more than 40 percent of global trade. The Obama Administration has been working in partnership with Congress and consulting closely with stakeholders around the country to ensure TPP addresses the issues that American businesses and workers are facing today, and may confront in the future.

The Trans-Pacific Partnership Framework

The United States, along with Australia, Brunei Darussalam, Chile, Malaysia, New Zealand, Peru, Singapore, and Vietnam are working to craft a high-standard agreement that addresses new and emerging trade issues and 21st-century challenges. The agreement will include:

• Core issues traditionally included in trade agreements, including industrial goods, agriculture, and textiles as well as rules on intellectual property, technical barriers to trade, labor, and environment.

• Cross-cutting issues not previously in trade agreements, such as making the regulatory systems of TPP countries more compatible so U.S. companies can operate more seamlessly in TPP markets, and helping innovative, job-creating small- and medium-sized enterprises participate more actively in international trade.

• New emerging trade issues such as addressing trade and investment in innovative products and services, including digital technologies, and ensuring state-owned enterprises compete fairly with private companies and do not distort competition in ways that put U.S. companies and workers at a disadvantage.

Leading Asia-Pacific Regional Integration Initiative

The TPP is the most credible pathway to broader Asia-Pacific regional economic integration. After nine rounds of negotiations, the nine countries made solid progress and have now achieved the broad outlines of an agreement. During their meeting on the margins of the APEC meeting in Honolulu, the TPP Leaders agreed to seek to conclude the agreement as quickly as possible and instructed their negotiators to expedite their work. The nine countries also welcomed the interest expressed by other countries in joining the agreement and will begin bilateral processes with these interested countries to discuss their readiness and ambition to meet the standards and objectives of the TPP. Once these bilateral processes have concluded, all current Parties will decide on inclusion of new members by consensus.

American Competitiveness in the Asia-Pacific

The TPP is a key element of the Obama Administration strategy to make U.S. engagement in the Asia-Pacific region a top priority. The huge and growing markets of the Asia-Pacific already are key destinations for U.S. manufactured goods, agricultural products, and services suppliers. As a group, TPP countries are the fourth largest goods and services export market of the United States. U.S. goods exports to the broader Asia-Pacific totaled $775 billion in 2010, a 25.5 percent increase over 2009 and equal to 61 percent of total U.S. goods exports to the world. U.S. exports of agricultural products to the region totaled $83 billion in 2010 and accounted for 72 percent of total U.S. agricultural exports to the world. U.S. private services exports totaled $177 billion in 2009 (latest data available), 37 percent of total U.S. private services exports to the world. America’s small- and medium-sized enterprises alone exported $171 billion to the Asia-Pacific in 2009 (latest data available).

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Video: Trans-Pacific Partnership negotiated in secret


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Video: Dennis Kucinich discusses the secrecy of the Trans Pacific Partnership
Dennis Kucinich (Democrat) is a member of the U.S. House of Representatives from Ohio’s 10th district
October 18, 2012 before the elction of the U.S. President took place on November 6, 2012


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Sources: Novan Iman Santosa The Jakarta Post

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