AfCFTA AND RCEP – THE FUTURE OF GLOBAL TRADE

THE AFRICA CONTINENTAL FREE TRADE AREA

CHINA AND 14 OTHER COUNTRIES HAVE NOW COME TOGETHER TO FORM THE “REGIONAL COMPREHENSIVE ECONOMIC PARTNERSHIP” [RCEP].

The Regional Comprehensive Economic Partnership spans 15 countries and 2.2 billion people, or nearly 30% of the world’s population, according to a joint statement released by the nations on Sunday, when the deal was signed. Their combined GDP totals roughly $26 trillion and they account for nearly 28% of global trade based on 2019 data.
The deal includes several of the region’s heaviest economic hitters aside from China, including Japan and South Korea. New Zealand and Australia are also partners, as are Indonesia, Thailand and Vietnam in Southeast Asia.
IT SEEMS MORE AND MORE THAT THE SLOGAN BECOMES TRUE:
AfCFTA AND RCEP – THE FUTURE OF GLOBAL TRADE

SOME MONTHS AGO,  THE AFRICAN CONTINENT CREATED THE AFRICAN CONTINENTAL FREE TRADE AREA [AfCFTA]. NOW CHINA AND 14 OTHER COUNTRIES – AMONG THEM AUSTRALIA AND NEW ZEALAND – FORMED THE REGIONAL COMPREHENSIVE ECONOMIC PARTNERSHIP [RCEP]. THE UNITED STATES OF AMERICA [U.S.A.] IS LAGGING BEHIND.

MORE AND MORE COUNTRIES REALISE THAT THE FUTURE OF GLOBAL ECONOMIC GROWTH AND ALLEVIATION OF POVERTY LIES IN COOPERATION. E.G., THE AfCFTA CREATED NORMS THAT DECREASE TARIFFS AND NON-TARIFF BARRIERS WITHIN THE NEXT YEARS. INCLUDED COUNTRIES WILL EVEN ABOLISH MANY OF THEM AT ALL. THESE MEASURES MIGHT IN THE SHORT TERM TO LESS REVENUE FOR PARTICIPATING COUNTRIES. HOWEVER, THE REDUCTION OR ELIMINATION OF TARIFFS AND NTBS WILL LEAD TO MORE PROSPERITY FOR PARTICIPATING NATIONS. SEE FOR THE BACKGROUND THE WORLD BANK PUBLICATION “AFRICAN CONTINENTAL FREE TRADE AREA”. YOU CAN DOWNLOAD THE EBOOK AT THE BEGINNING OF THIS POST.

THE BACKGROUND OF THE RCEP IS THE SAME. ON INITIATION BY CHINA, COUNTRIES CAME TOGETHER TO EASE THE TRADE CAPABILITIES AMONG EACH OTHER.

SOME PEOPLE NOW COMMENT THAT RCEP IS ONLY AN ATTEMPT BY CHINA TO MANIFEST A RULING POSITION IN THE GEO-ECONOMIC AREA. I SEE IT DIFFERENTLY: RCEP IS IN LINE WITH THE POLITICS CHINA STARTED WITH THE “BELT AND ROAD” INITIATIVE. CHINA REALISED THAT NATIONS ONLY CAN PROSPER IF THEY COOPERATE. OF COURSE, ALSO CHINA WILL BENEFIT FROM SUCH A COOPERATION, BUT, WHO WILL BLAME CHINA FOR THAT?

PERHAPS THE U.S.A., WHOSE SELF-CENTERED POLICY ISOLATED THEM MORE AND MORE IN RECENT YEARS. THIS POLICY ONLY MADE PEOPLE IN THE U.S.A. PAY MORE FOR IMPORTED GOODS, BECAUSE COMPANIES PASSED OVER THE TARIFFS TO THE CUSTOMERS. FURTHERMORE, FARMERS OFTEN SUFFERED A LOSS OF INCOME. THAT’S BECAUSE EXPORTS TO CHINA AND OTHER COUNTRIES DIMINISHED.

THEREFORE, THE ONLY WAY TO SOLVE PROBLEMS LIKE POVERTY AND CLIMATE CHANGE IS COOPERATION.

AND THEREFORE, AfCFTA AND RCEP – THE FUTURE OF GLOBAL TRADE

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