RCEP Agreement to Bolster Economic Growth in Asia-Pacific Region

Strategic Insights -

The Regional Comprehensive Economic Partnership (RCEP) agreement is poised to play a significant role in bolstering economic growth in the Asia-Pacific region and helping stabilize the world trade system. The mega trade pact, covering 30 percent of the world's total population and economic output, is expected to promote free trade and mutual benefits as the global economy faces headwinds. The RCEP has the potential to become the world's largest free trade pact, gradually eliminating tariffs on over 90 percent of goods traded among its 15 members.

Key Takeaways:

  • The RCEP agreement is expected to inject robust momentum into the economic integration of the Asia-Pacific region, presenting member states with new market opportunities and bolstering their confidence in multilateralism.
  • The agreement has the potential to become the world's largest free trade pact, gradually eliminating tariffs on over 90 percent of goods traded among its 15 members.
  • The total trade volume among RCEP members reached $5.7 trillion last year, up 2.5 percent year-on-year.
  • China has been making cutting-edge AI capabilities available both domestically and globally, with DeepSeek, a cost-effective and open-source large language model, being a prime example.
  • The RCEP comprises the 10 member states of the Association of Southeast Asian Nations, as well as China, Japan, South Korea, Australia, and New Zealand, with China's Hong Kong Special Administrative Region, Sri Lanka, and Chile having submitted applications seeking accession.
  • Hong Kong's accession would not only boost growth of regional trade but also drive regional financial development and enhance the internationalization of regional industries.
  • The growing interest from potential applicant countries and regions represents a powerful testament to the commitment to maintaining an open and inclusive agreement.

Statistics:

  • Total trade volume among RCEP members: $5.7 trillion in 2024, up 2.5 percent year-on-year. (Source: Report released at the 2025 RCEP Media and Think Tank Forum)
  • Population and economic output covered by the RCEP: 30 percent of the world's total.
  • Goods traded among RCEP members: expected to be gradually eliminated tariffs on over 90 percent.
  • Number of RCEP members: 15.
  • Trade volume among RCEP and non-RCEP countries: expected to continue growth due to the agreement's potential for world trade.

Sources:

  • The forum was organized by China Daily, the China Institute for Reform and Development, and the China Oceanic Development Foundation.
  • "Unilateral protectionism and hegemonic bullying are wreaking havoc worldwide," said Hainan Governor Liu Xiaoming.
  • Hainan, as a free trade port, will fully leverage its existing policies to integrate with the rules of the RCEP, said Hainan Governor Liu Xiaoming.
  • The RCEP - the world's largest free trade pact, which is aimed at gradually eliminating tariffs on over 90 percent of goods traded among its 15 members.
  • China's DeepSeek, a cost-effective and open-source large language model, was mentioned as an example of cutting-edge AI capabilities being made available both domestically and globally.