The Regional Comprehensive Economic Partnership was signed on 15 November, a free trade agreement between the ten ASEAN member states and five other partners: Australia, China, Japan, New Zealand and South Korea. The combined GDP and total population of the participating countries both account for approximately 30% of the global total.

The agreement aims to drastically reduce tariffs on goods traded within the region by between 85 and 90%, and to establish unified rules of origin to facilitate international supply chains and trade between its member countries.

Furthermore, the agreement will also promote foreign direct investment (FDI): the region currently attracts 24% of global FDI and is the most dynamic area internationally.

The agreement excludes issues such as labour standards, environmental protection, agriculture, and the regulation of state-owned enterprises (SOEs).

With a view to protecting domestic production, India decided not to join the agreement in 2019, although it is possible that this situation may change in the future.

The agreement is expected to enter into force within two years, once it has been ratified by all member countries.

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