RCEP：Features and Future Agenda
Zhang Yunling1
RCEP is an important framework for global trade and regionalism. The
key impact of RCEP is to provide market access and expand the global
production value chain activities in the region.
I.
The key features
RCEP is based on three key elements: rules-based trade and investment;
market access and economic cooperation.
A. RCEP is a significant step to integrate East Asia market by common
rules-from overlapping agreements to an integrate framework. The
strength of RCEP is to build the institutional framework under economiccooperation as it provides differential treatment and support for ASEAN
least developed countries (LDCs) to develop stable integration
strategies to fully implement RCEP commitments.
B. It is a living agreement in a progressive manner by two means: 1)
progressive implementation with concrete measures to monitor andevaluate; 2) progressive upgrading through redesigning andrenegotiating the agreement.
C. Covering new areas, especially an agreed digital infrastructure by thecommon operating standards, cross-border trade protocols and trade
settlement processes;
II.
Challenges
A. Reconstructing East Asia supply chain network: 1) labor intensive andmiddle products moving out from China to ASEAN and India; 2) China
as a center market is under reformation; 3) Week outside and inside
demand due to slow growth
B. Big power competition effect that makes co-existence of “controlledtrade” and “free trade”: 1) RCEP, CPTPP, IPEF coexisting andoverlapping; 2) The “de-risk” and “resilience supply chain” measurescause interruptions
C. Capacity building for effective implementation: 1 ） Real efforts on
capacity building for less developing economies to focus on issues that
support the structural transformation of member countries to improvetheir domestic capacity for greater trade and investment integration,
soft and hard infrastructure enhancement, and increased participationof small and medium-sized enterprises (SMEs); 2）Real efforts ontechnical capacity building to integrate the standards and facilitate thetrade and investment process. 3) Real efforts on experience sharing,
economic and political cooperation, and the creation of a framework
for extending rules and membership.
III.
Recommendation points

1

Zhang Yunling, Academy Member of CASS, Chair Professor of Shandong University

A. The institutional setting of RCEP should be utilized for reducing policy
risks and defending the rule-based trading regime, including setting up
the production network monitoring and upgrading mechanism;
normalizing the ministerial meeting and joint committees, and asecretariat etc.
B. To make review of RCEP implementation, including the expert
committees to address and review issues related to: trade in goods,
trade in services and investment, sustainable growth, and the businessenvironment annually and a joint committee for general review in 5years.
C. The up-grating agenda for RCEP must be done based the evaluation,
and also to consider the expansion of the membership, e.g., HongKong, East Timor, India, other possible countries when they are ready.
In facing the complex regional and global situation, RCEP is not simply afree trade and investment arrangement, as it incorporates the cooperation
agenda which is an essential element in building capacity for economic
reform and mutually reinforcing regional development and can provide theglobal public good of an open and cooperative international economy.