The Regional Comprehensive Economic Partnership (RCEP), also known as the RTA Trade Agreement, is a mega trade deal announced in November 2020. The RCEP involves 15 countries, namely the ten member countries of the Association of Southeast Asian Nations (ASEAN) and five other countries – China, Japan, South Korea, Australia, and New Zealand.

This Free Trade Agreement (FTA) has a combined population of over 2 billion people, with a gross domestic product (GDP) of approximately $26.2 trillion, making it the world`s largest trade agreement. The RCEP aims to eliminate tariffs and quotas on a broad range of goods and services, as well as improve investment and intellectual property rules between member countries.

The main goal of the RCEP is to increase trade between member countries and to create regional economic integration, especially in the Asia-Pacific region. The agreement has been long-awaited, with negotiations taking place for over eight years. The COVID-19 pandemic accelerated the need for this deal as countries looked towards economic recovery and collaboration to combat the pandemic`s impact.

A key feature of the RCEP is its emphasis on regional supply chains. The agreement focuses on reducing trade barriers and improving rules on investment and intellectual property, creating a more seamless flow of goods and services between member countries. This will help to improve economies of scale, increase competition, and drive economic growth. By enhancing trade relations and encouraging investment, the RCEP hopes to create jobs and boost the economy in member countries.

The RCEP also offers benefits to small and medium-sized enterprises (SMEs), by providing a platform to access new markets and expand their businesses. The agreement will also promote greater transparency and predictability in trade policies, which will help to reduce the costs of doing business for SMEs.

The RCEP has faced some criticism for its lack of environmental and labor protections. Critics argue that this agreement may lead to a „race to the bottom” in labor standards and environmental regulations. However, proponents argue that the agreement includes provisions for sustainable development and enhancing labor standards.

In conclusion, the RCEP is a significant trade agreement that has the potential to transform the Asia-Pacific region. With the elimination of trade barriers, increased investment, and clearer rules for doing business, the RCEP offers a bright future for the member countries` economies. As the agreement comes into force, it will be important to monitor its progress and ensure that it is beneficial for all stakeholders, including SMEs and the environment.