SINGAPORE: Negotiations for the Regional Comprehensive Economic Partnership (RCEP) have reached a “critical stage” and a conclusion is “finally in sight”, said Prime Minister Lee Hsien Loong on Wednesday (Aug 29).
When concluded, it will be the world’s largest trading bloc, covering a third of the world’s gross domestic product (GDP) with tangible benefits to the region and its partners, Mr Lee added as he spoke at the opening ceremony of the 50th ASEAN Economic Ministers’ (AEM) Meeting and Related Meetings.
AdvertisementSingapore, which is the Association of Southeast Asian Nations (ASEAN) chair this year, is hosting the annual series of meetings from Tuesday to Saturday at the Shangri-La Hotel.
In his speech, Mr Lee said regional economic cooperation and integration is key for ASEAN to realise its potential.
This includes pressing on with the implementation of the ASEAN Economic Community (AEC) Blueprint 2025, as well as supporting an open and inclusive multilateral system amid growing trade tensions.
Escalating trade friction between the US and its trading partners has put the rules-based multilateral trading system, which has underpinned ASEAN’s growth and prosperity, under pressure, he said.
AdvertisementAdvertisementAt the same time, each ASEAN member state is subject to different pulls and pressures from bigger powers.
“In these circumstances, all the more members must stay united and strive to maintain our cohesion and effectiveness,” said Mr Lee.
ASEAN has exerted significant effort to make progress on RCEP, which builds upon the existing 5 ASEAN Plus One Free Trade Agreements (FTAs) to strengthen economic linkages and enhance trade and investment flows.
“Of course, given the diversity of RCEP’s members, we all have to make trade-offs and compromises. But we should weigh these against the significant strategic and economic value of the RCEP,” Mr Lee said.
“The RCEP negotiations have continued for some time, and have now reached a critical stage. After a great deal of work, the possibility of substantively concluding the RCEP negotiations is finally in sight.”
Describing the conclusion as “an important signal to the world”, Mr Lee urged RCEP countries to “take a long term view, keep up the momentum, engage constructively and with maximum flexibility” for the trade pact to be delivered this year.
Mr Lee also stressed on the importance of pressing on with regional economic integration and fully implementing the AEC Blueprint 2025.
“This will enable ASEAN businesses to operate more seamlessly across the region, and make our companies, and economies, more competitive globally,” he said.
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