Regional Comprehensive Economic Partnership negotiations

RCEP market snapshot (including Australia)

  • GDP: US$19.9 trillion (2011)
  • GDP per capita: US$5,919 (2011)
  • Population: 3,367 million (2011)
  • Trade with Australia: AU$356.4 billion (2011)

About the RCEP negotiations

The Regional Comprehensive Economic Partnership (RCEP) negotiations were launched by Leaders from ASEAN and ASEAN’s FTA partners in the margins of the East Asia Summit in Phnom Penh, Cambodia on 20 November 2012. The negotiations will be based on the Guiding Principles and Objectives for Negotiating the RCEP [PDF] endorsed by Leaders.

RCEP is an ASEAN-centred proposal for a regional free trade area, which would initially include the ten ASEAN member states and those countries which have existing FTAs with ASEAN – Australia, China, India, Japan, Republic of Korea and New Zealand. The RCEP will build on and expand Australia’s existing FTA with ASEAN and New Zealand, AANZFTA. It will complement Australia’s participation in bilateral trade negotiations and in Trans-Pacific Partnership Agreement (TPP) negotiations.

RCEP has the potential to deliver significant opportunities for Australian businesses. The 16 RCEP participating countries account for almost half of the world’s population, almost 30 per cent of global GDP and over a quarter of world exports.

The objective of launching RCEP negotiations is to achieve a modern, comprehensive, high-quality and mutually beneficial economic partnership agreement that will cover trade in goods, trade in services, investment, economic and technical cooperation, intellectual property, competition, dispute settlement and other issues.

RCEP will form part of the Government’s strategy for lowering trade barriers and securing improved market access for Australian exporters of goods and services and Australian investors.

Key interests and benefits

  • RCEP participating countries are important economic partners and regional neighbours for Australia.
  • Nine out of Australia’s top 12 trading partners (China, Japan, ROK, Singapore, New Zealand, India, Thailand, Malaysia, and Indonesia) are participating in RCEP negotiations, and together with the other six participating countries, account for almost 60 per cent of Australia’s two-way trade, and 70 per cent of Australia’s goods and services exports.
  • RCEP will provide a basis for more open trade and investment in the region. This will help address concerns about a ‘noodle bowl’ of overlapping bilateral agreements and derive additional benefits (eg. through supply chains) from regional liberalisation.
  • Australia and a number of other countries are engaged both in the Trans-Pacific Partnership Agreement (TPP) and RCEP negotiations – both processes provide possible pathways to a free trade area of the Asia–Pacific.
Map showing RCEP countries

News

RCEP Launch – November 2012, Phnom Penh

Prime Minister Julia Gillard joined Leaders from 15 countries of the Asian region in the margins of the East Asia Summit on 20 November 2012 to launch the Regional Comprehensive Economic Partnership (RCEP) negotiations.

Leaders standing in a line, crossing their arms and holding hands at the RCEP launch

Australia in the Asian Century White Paper – October 2012

The Australia in the Asian Century White Paper was released on 28 October 2012, and outlined Australia’s priorities for economic integration throughout the Asia-Pacific:

There are different possible pathways to a free trade area of the Asia–Pacific. The Trans-Pacific Partnership Agreement negotiations involve 11 APEC members and membership is likely to continue expanding. Australia will support the November 2012 launch of, and participate in negotiations for, the Regional Comprehensive Economic Partnership involving ASEAN, Australia, China, India, Japan, New Zealand and South Korea.

Negotiations for the Trans-Pacific Partnership Agreement and the Regional Comprehensive Economic Partnership could create momentum for competitive liberalisation and put Australia on two complementary pathways to a free trade area of the Asia–Pacific. Australia welcomes and encourages these processes. We recognise that outcomes agreed in one negotiation that facilitate deeper economic integration will encourage new members to join, and also create pressure to adopt similar liberalisation in competing negotiations.

Australia in the Asian Century White Paper, page 208.

Media release: Australia to pursue free trade area of the Asia-Pacific, Minister for Trade and Competitiveness, 28 October 2012.

ASEAN Economic Ministers Plus FTA Partners’ Consultations – August 2012, Phnom Penh

Economic and Trade Ministers politically endorsed the RCEP concept and agreed key elements of RCEP’s scope and level of ambition, expressed in the form of the Guiding Principles and Objectives for Negotiating the Regional Comprehensive Economic Partnership. Minister for Trade and Competitiveness Dr Emerson noted the importance of addressing traditional trade barriers as well as ‘21st Century’ issues, and stated that Australia would pursue the inclusion of labour and environment issues in RCEP.

Submissions

The Regional Comprehensive Economic Partnership (RCEP) negotiations will be based on the Guiding Principles and Objectives for Negotiating the RCEP [PDF]. The negotiations will cover trade in goods, trade in services, investment, economic and technical cooperation, intellectual property, competition, dispute settlement and other issues that may be agreed in the course of negotiations.

Australia's participation in the RCEP negotiations will form part of the Government's strategy for lowering trade barriers and securing improved market access for Australian exporters of goods and services and Australian investors.

DFAT continues to receive submissions from interested stakeholders in relation to Australia's current engagement in separate bilateral trade negotiations with five RCEP participating countries — China, India, Indonesia, Japan and the Republic of Korea — and the Trans-Pacific Partnership Agreement (TPP) negotiations involving six RCEP countries (Australia, Brunei, Malaysia, New Zealand, Singapore, Vietnam).

Call for public submissions

The Government accords high priority to the views and expertise of all stakeholders with interests in Australia's commercial relationship with the other 15 RCEP participating countries. As part of the process of developing the Government's objectives for the RCEP negotiations, the Department of Foreign Affairs and Trade (DFAT) is inviting further public submissions.

DFAT welcomes new and updated public submissions focused on RCEP's potential to provide a basis for more open trade and investment in the region, as well as specific market access barriers and impediments to trade and investment in the various participating countries. Submissions may also wish to address issues associated with RCEP's potential impact on Australia. Submissions are welcomed in the context of Australia's engagement in RCEP and other ongoing bilateral and regional negotiations.

All submissions will be made publicly available on the DFAT website unless the author specifies otherwise.

Interested parties are encouraged to lodge their submission by 5 April 2013.

  • Submissions may be lodged electronically to: rcep@dfat.gov.au
  • By post to:
    Regional Comprehensive Economic Partnership (RCEP)
    Free Trade Agreement Division
    Department of Foreign Affairs and Trade
    RG Casey Building
    John McEwen Crescent
    BARTON ACT 0221
  • Fax: (02) 6261 2187

For further information please refer to www.dfat.gov.au/fta or telephone (02) 6261 1111.

Industry consultations will also be conducted in state/territory capitals. Those interested in participating are invited to advise the RCEP team by email: rcep@dfat.gov.au

For business

RCEP will have the potential to deliver significant opportunities to Australian businesses. The RCEP will cover 9 of Australia's top 12 trading partners, and collectively RCEP participating countries will account for a combined GDP of almost US$20 trillion. These countries account for almost 60 per cent of Australia's total two way trade, and 70 per cent of our exports.

DFAT background papers

For more information on doing business with RCEP participating countries, or about specific export opportunities, please refer to the Australian Trade Commission (Austrade) website. Austrade's AANZFTA website has further information about doing business in ASEAN.

Other FTAs with RCEP participating countries

Other FTAs between and among the RCEP participating parties will co-exist; overlapping agreements will not place significant additional costs on business. Businesses will be able to decide which FTA they will use, based on a range of factors such as the tariffs and associated rules of origin applied. Many Australian export businesses currently make these assessments, for example, between SAFTA or TAFTA and AANZFTA.

Australia has existing trade agreements with:

Australia is negotiating trade and economic partnership agreements with:

Australia and five other RCEP countries are also negotiating a Trans-Pacific Partnership Agreement (TPP).

DFAT maintains up-to-date country and regional factsheets containing economic data about each of the RCEP participating countries.

Resources

DFAT background papers

Contact us

  • Email: rcep@dfat.gov.au
  • Fax: +61 2 6261 2187
  • Mail:
    RCEP Enquiries
    Free Trade Agreement Division
    Department of Foreign Affairs and Trade
    R.G. Casey Building
    John McEwen Crescent
    Barton ACT 0221

For media enquiries, please call DFAT's Media Liaison Section: (02) 6261 1555.