16 Countries Push For Asia Pacific Mega Trade Deal As US Mulls More China Tariffs


09/02/2018



A mega trade deal that would turn out to be the largest in the world ever and creating the largest trading block in the world is being hastened between 16 economies in Asia Pacific region even as the United States president Donald Trump is getting ready to impose another round of tariffs on import of Chinese products into the US worth $200 billion. 
 
Ramon Lopez, the Philippines’ secretary of trade and industry, said in a television interview that what's happening in the US "has actually given us the urgency" to push forward with the negotiations and come to an agreement on trade.
 
About one third of the global economy would be included in the Regional Comprehensive Economic Partnership, or RCEP, after it is completed.
 
The 16 countries are made up of the 10 Association of South East Asian Nations and the economies of China, Japan, South Korea, Indi, Australia and New Zealand.
 
"By the end of this year, everybody is looking at a very good outcome. In other words, we're referring to a possible substantial conclusion given the momentum that we're all having right now," Lopez said on the sidelines of a meeting of ASEAN economic ministers in Singapore.
 
He said that all of the countries that are part of the potential agreement on the trade pact have made advancements with respect to reducing the mutual issues and problems which had previously been contentious. He added that the closure of the trade deal is in sight and talks could ocme to an end by the year end even though the complete deal in its final format might not be signed this year itself.  
 
"That is a good development, with all these protectionism woes that we see around," said Lopez. He added that the RCEP countries have the intention to show that there is still progress in the negotiations on multilateral trade in the Asia Pacific region.
 
The global economic outlook has been cast a shadow over it be the trade tensions between the U.S. and its major trading partners which has also had its impact on the markets. Trump has very recently threatened to pull the US out of the World Trade Organization if the international trading group doesn't "shape up" in addition to attempting opt rejig what he views as unfair trade deals.
 
"Nobody wins in a trade war," Lopez said, expressing a sentiment shared by many country leaders, investors and analysts. "Eventually, if the world economy gets affected and it slows down, then definitely it impacts everyone."
 
(Source:www.cnbc.com)