Thailand looks set to sign the Regional Comprehensive Economic Partnership (RCEP) trade pact by the middle of this month.
According to a source at the Commerce Ministry who requested anonymity, Commerce Minister Jurin Laksanawisit would represent Thailand in signing the pact during Asean regional summits held virtually from Nov 12-15.
Vietnam, as chair of Asean, is scheduled to hold a series of regular summit meetings online from Nov 12-15, including the East Asia Summit involving China, Japan and the US.
According to the schedule, the annual Asean Summit will be held on Nov 12, the East Asia Summit on Nov 14 and the RCEP Summit on Nov 15.
The RCEP is a proposed free-trade agreement (FTA) between the 10 member states of Asean and six dialogue partners, namely China, Japan, South Korea, India, Australia and New Zealand.
Negotiations on RCEP started in late 2012 at the 21st Asean Summit in Phnom Penh.
In last-minute talks on Nov 4 last year, with Thailand as Asean chair, India pulled the plug on joining the RCEP over unresolved issues, especially those concerning agricultural tariffs.
India later announced it would not be joining the pact this year during the Asean Summit scheduled for Vietnam.
India is concerned the deal could affect the livelihood of its most vulnerable citizens and lead to rising trade deficits and a flood of imports, especially cheap products from China.
A statement from RCEP said the 15 participating countries have concluded text-based negotiations for all 20 chapters and market access issues.
With or without India, the RCEP agreement has been scheduled for official signing this year, coming into force either in 2021 or January 2022.
According to the source, RCEP will support open, comprehensive and regulatory trade and investment. It will strengthen and maintain connectivity to the regional production and supply chain, especially enhancing economic recovery from the impact of Covid-19.
After the pact is signed, the Commerce Ministry will propose it to the cabinet and ask for parliamentary ratification within next year, the source said.
Under the parliamentary ratification process, if half the RCEP member states (at least six Asean countries and four non-Asean countries) ratify the pact, it will be enforced instantly.
Earlier last month, Auramon Supthaweethum, director-general of the Trade Negotiations Department, said RCEP will be implemented in 2021 because every country’s economy is reeling from the pandemic and a trade deal is needed to promote economic growth.
In 2019, the population of RCEP members topped 3.6 billion, with a combined GDP worth more than $28.5 trillion, making up 32.7% of the world’s GDP. The trade volume of members was $11.2 trillion or 29.5% of world trade.
Source: bangkok post