Singapore Among the 15 Countries That Signed the World’s Largest Trade Pact
Singapore was among the 15 countries to sign the Regional Comprehensive Economic Partnership (RCEP), the world’s largest trade pact. The signing took place on 15 November 2020.
This was a momentous move and one that is likely to spur the economy as it builds o existing free trade deals with its members. The RCEP is set to deepen the economic links between the Asia-Pacific countries. This will make it much easier to incorporate better protection in areas like e-commerce, facilitate foreign investments, and ease the trade of goods and services.
Currently, 30% of the world’s economy hinges on the members of the RCEP. Singapore’s Prime Minister described the signing as a “major step forward for the world”. The pact comes at a time when multilateralism is losing ground and global growth is slowing.
By signing the pact, members of the RCEP will have much larger stakes. Especially where everyone’s prosperity and success is concerned. The members of the RCEP are diverse, and this is proof that different economies and come together to help each other. It also shows that a multilateral trading system can be successful.
India Will Soon Be Able to Come on Board and Sign the Pact in the Future
Singapore hopes that India will soon be able to come on board and sign the pact in the future. Unfortunately, New Delhi pulled out last year over concerns about trade imbalances.
With the signing of the RCEP, all members will have greater access to the world’s largest market, China. Since at least 50 sub-sectors are getting their limits raised with foreign shareholding, businesses should find it easier to integrate and navigate.
RCEP will help to ensure that businesses get the stability and certainty they need by keeping markets open. This is to help cope with the post-COVID19 crisis. With Singapore signing the RCEP too, it is proof of every member’s commitment to contribute to trade. The signing is also a statement meant to reiterate the members’ strategic intent to share in each other’s success.