RCEP Trade Deal May Buoy Post-Covid Economic Growth in Asia
The signing of the Regional Comprehensive Economic Partnership by China, Japan, South Korea, and 12 other Asia Pacific states over the weekend paves the way for a reduction in trade barriers at a time that the U.S.-China decoupling and the Covid-19 pandemic pose challenges to global commerce. The RCEP deal may support a relatively faster recovery for its members, particularly China: The agreement may buoy China’s gross domestic product by 0.5% a year through 2030, Bloomberg Economics estimates. South Korea could benefit from a 1.4% boost and Japan by 1.3%, assuming 90% of tariffs are eliminated.
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