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China-backed trade deal pushed back to 2019
SINGAPORE, Nov 13, 2018 (BSS/AFP) – A China-backed bid to complete the
world’s largest trade deal — without the United States — was pushed back to
next year after Asia-Pacific trade ministers failed to agree key terms at a
Singapore summit.
The Regional Comprehensive Economic Partnership (RCEP), covering half the
world’s population, is billed as an antidote to Donald Trump’s “America
First” agenda, which has seen tariffs imposed on almost half of all Chinese
imports to the US — and retaliatory levies by Beijing.
Chinese Premier Li Keqiang is in Singapore to give impetus to the deal on
the sidelines of a gathering of Southeast Asian and world leaders.
But trade diplomats late Monday indicated negotiations on the RCEP, a
sweeping 16-country deal that includes China, Japan, India and the 10 members
of ASEAN (Association of Southeast Asian Nations), will carry on deep into
2019.
“We made significant progress, (but it) is not the final conclusion,” New
Zealand Minister of State for Trade and Export Growth Damien O’Connor told
reporters late Monday.
“But we are very happy with that and is heading in the right direction,
hopefully ready for conclusion next year.”
India’s concerns over opening its markets, in particular to Chinese firms,
has been a key sticking point in the five years of negotiations.
“The future lies in RCEP,” Indian trade minister Suresh Prabhu told
reporters, but urged a cautious and patient approach to talks to ensure
“every country will benefit from it”.
Several general elections scheduled early next year including in India,
Thailand and Indonesia have complicated the timeframe of a deal that will
open markets in countries covering nearly half the world’s GDP.
A draft leaders’ statement on the RCEP seen by AFP said talks will be
concluded next year, noting the urgency of reaching an agreement “given the
current headwinds faced by the global economy”.
RCEP was given extra impetus after Trump pulled the US out of rival pact
the Trans-Pacific Partnership (TPP). The TPP is still alive even without
Washington, but RCEP is now the world’s biggest trade deal.
However, the Beijing-backed pact is much less ambitious than the TPP in
areas such as employment and environmental protection.
The ASEAN summit, which formally opens on Tuesday afternoon, is expected
to sweep in trade, maritime disputes and the Rohingya crisis.
Key world leaders including China’s Li, Russian President Vladimir Putin
and Mike Pence — Donald Trump’s number two — are also in Singapore for
talks foreshadowed by the China-US trade war and its ripple effect on global
economies, particularly in Asia.
Pence is also expected to keep pressure on Beijing over its growing
aggression in the South China Sea.
Myanmar’s de facto leader Aung San Suu Kyi is also in Singapore and is
likely to face intense scrutiny over her country’s treatment of the Rohingya
minority, particularly from Muslim-majority nations at the summit.
Amnesty International on Monday stripped Suu Kyi of its highest honour,
citing her “indifference” to the atrocities committed by Myanmar’s army
against the group.
BSS/AFP/MR/ 1040 hrs