RCEP Agreement: A Mega FTA on the Rise
Significance of the Regional Comprehensive Economic Partnership
The RCEP agreement is the world's largest FTA, covering approximately 30% of the global population and GDP
Economic Scale of the RCEP Agreement
Expansion of New RCEP Member Countries
Currently, RCEP includes a total of 15 countries: 10 ASEAN nations, South Korea, Japan, China, Australia, and New Zealand.
Recently, three economies—Hong Kong, Sri Lanka, and Chile—have applied to join as new member countries.
If the accession of these three countries is finally approved, the RCEP agreement will expand into a super-mega FTA encompassing 18 countries.
New member countries.
Expansion of New RCEP Member Countries
In particular, if Sri Lanka and Chile, excluding Hong Kong where the AHKFTA is already in effect, join RCEP as member countries, the Philippines will benefit by adding two new FTA trading partners without the need for separate FTA negotiation processes.
Expected Impact
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Sri Lanka
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Population 22,156,000 people
Nominal GDP 8.44 billion USD
Economic Scale (PPP) 321.98 billion USD
Per Capita Nominal GDP 3,830 USD
Per Capita PPP 14,230 USD
However, if Sri Lanka becomes a member of RCEP, there will likely be significant advancements in their trade relationship.
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Chile
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Population 19,629,000 people
Nominal GDP 335.53 billion USD
Economic Scale (PPP) 653.36 billion USD
Per Capita Nominal GDP 17,093.2 USD
Per Capita PPP 33,284.5 USD
their operational reach to promising markets in Latin America on the other side of the globe, and by helping to diversify
their export markets while building the necessary infrastructure for this expansion.