The Regional Comprehensive Economic Partnership (RCEP), the world's largest free trade agreement, is expanding its horizons. In June 2024, Chile, along with Sri Lanka and the Hong Kong Special Administrative Region, submitted applications to join the pact. India's potential membership is also under reconsideration, signaling a significant shift in the global trade landscape.
RCEP, meticulously negotiated by the Association of Southeast Asian Nations (ASEAN) over eight years, has primarily focused on trade dynamics within North and Southeast Asia. Chile's bid marks the first from the eastern Pacific, introducing a fresh dimension to the agreement. Should India and Sri Lanka join, RCEP will extend its reach across both the Pacific and Indian Oceans, fostering a more integrated global trade network.
Complementing RCEP's expansion is the imminent opening of the Chancay mega port in Peru. Owned 60 percent by China's COSCO Shipping, this facility is the first major trade port on South America's west coast. The port is set to streamline trade between South America and Asia, eliminating the need for transshipment through Mexico or the United States. This development is expected to reduce the shipment time between Brazil and China by 15 days, enhancing efficiency and strengthening economic ties across continents.
Reference(s):
cgtn.com
