The free trade agreement between China and South Korea officially entered into force on December 20, 2015. Under the agreement, South Korea will eliminate tariffs on 92% of all Chinese products within 20 years of implementation, in exchange for China`s abolition of tariffs on 91% of South Korean products. The RCEP brings together China, Japan and South Korea for the first time in a trade agreement and includes 10 Southeast Asian countries, as well as Australia and New Zealand. RCEP`s signature brings together 2.2 billion people and covers 28 percent of world trade „While the U.S. is currently focused on domestic policy, including the need to fight the pandemic and rebuild their economy and infrastructure, I`m not sure the rest of the world is waiting for America to get its home back in order,“ said Jennifer Hillman Senior Fellow for Trade and International Political Economy at the Council on Foreign Relations. „I think there needs to be reactivity measures for what China is doing.“ List of agreements between two states, two blocs or one bloc and one state. The agreement, the Comprehensive Regional Economic Partnership (R.C.E.P., is limited in scope. Yet it has considerable symbolic weight. The pact covers more humanity – 2.2 billion people – than any previous regional free trade agreement, and could help consolidate China`s image as the dominant economic power in its neighborhood. The China-ASEAN Free Trade Agreement (CAFTA) is the first free trade agreement for foreign negotiations in China and the largest free trade area.
CAFTA has strongly encouraged the long-term stable and rapid development of bilateral trade and economic relations. Negotiations on the free trade agreement began in August 2006 and both sides completed negotiations in September 2008, during eight rounds of negotiations. The China-Singapore Free Trade Agreement is a comprehensive free trade agreement that includes trade in goods, trade in services, staff flows and customs procedures. According to a blog analysis by the Brookings Institution, the Trans-Pacific Agreement and the new RCEP „will together offset global losses resulting from the trade war between the United States and China, but not for China and the United States.“ The pact will most likely formalize business between countries instead of doing it again.