Saving Potential of Regional Comprehensive Economic Partnership (RCEP): Implication for China and Japan
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Keywords

Japan; China; ASEAN; RCEP; political; economy; regionalism

How to Cite

Wardani, R. (2019). Saving Potential of Regional Comprehensive Economic Partnership (RCEP): Implication for China and Japan. Journal of Economic Info, 6(1), 34-42. https://doi.org/10.31580/jei.v6i1.122

Abstract

ASEAN community and six ASEAN FTA partners’ leaders are engaging to strengthen economic development within region by establishing RCEP. ASEAN had signed trade agreements with all the other six FTA partners. The other six ASEAN trading partners within RCEP have no free trade agreements yet among them. Therefore, the RCEP is having tough negotiation among the six non-ASEAN member countries. RCEP commitment is established through ASEAN as a catalyst. This study will examine how much total saving potential of free trade agreement by using ex-ante FTA analysis and the political implication of RCEP for non-ASEAN member countries specially Japan and China. RCEP will have small impact without China and Japan existence. These two countries are important to be maintained in the RCEP initiatives. The six non-ASEAN members in RCEP are finding some ways to exploit the balance benefit among them. China-Japan relations will be embedded in the RCEP association if RCEP will be concluded. From the economy perspective of Japan and China seems to have tight economic interdependence. From the political perspective of both countries are having long history relations, distrust and mistrust. Therefore, the economic interdependence could be a way for both countries to have a harmony relationship. Japan and China need ASEAN and other RCEP members to tighten the economic and political relations among them.         

 

https://doi.org/10.31580/jei.v6i1.122
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