RCEP, the world’s largest free trade agreement (and how it affects Latin America)
After a decade in the making, the world's largest trade deal is a fact.
Asian leaders signed this Sunday in Hanoi the mega-treaty that includes the ten members of the Association of Southeast Asian Countries (ASEAN) as well as China, Japan, South Korea, Australia, and New Zealand.
Between all the members they add up to almost a third of the world population and 29% of the Gross Domestic Product of the planet.
The agreement, which bears the name of RCEP ( Regional Comprehensive Economic Partnership ), will be greater than that of USMCA (United States, Mexico and Canada) and the European Union.
How does it affect Latin America?
Bilateral trade between Asia and Latin America has grown continuously in recent decades, but the integration between the two regions has much room for improvement.
"In the short term, the RCEP can cause some commercial diversion, limit the growth in trade between Latin America and Asia," says Jack Caporal, a trade expert at the Center for Strategic & International Studies (CSIS), based in Washington.
"However, common standards will make it easier for Latin American companies with a presence in Asia to do business there," says Caporal.
"An important question for Latin American countries is whether they pursue integration with Asia individually or jointly, such as through the Pacific Alliance (TPP) or Mercosur," he adds.