Last hurdle cleared for world’s largest trade deal to take effect in January

By Riyaz ul Khaliq

ISTANBUL (AA) – The Regional Comprehensive Economic Partnership Agreement (RCEP), known as the world’s largest free trade agreement, will take effect from January.

Australia and New Zealand on Tuesday became the latest countries to ratify the deal, which frames common rules for economic activity among the signatories, paving the way for it to take effect within 60 days.

The deal was signed last November by 10 members of the Association of Southeast Asian States (ASEAN) and five non-ASEAN countries.

It covers around 28% of international trade, nearly 30% of the world's population, over 30% of the global gross domestic product, and close to 30% of global foreign direct investment.

At least six ASEAN members and three non-ASEAN countries had to ratify the deal for it to come into force. The requirement has been fulfilled as ASEAN states Brunei, Cambodia, Laos, Singapore, Thailand and Vietnam and non-ASEAN states China and Japan had already ratified the RCEP.

In a joint statement, Australia’s trade and foreign affairs ministers said the RCEP will ensure “that our farmers and businesses are able to access the benefits of what will be the world’s the largest free trade agreement.”

“RCEP will strengthen Australia’s trade relationship with the ASEAN and signal our commitment to ASEAN-led regional economic architecture,” Dan Tehan and Marise Payne said.​​​​​​​