"I hope the RCEP will continue to contribute to peace and development in the Asia-Pacific region and to demonstrate to the world what free and open economies can achieve by working together," said Wenli Cheng, a senior lecturer in the Department of Economics from Melbourne's Monash University.
by Matthew Goss, Zhang Jianhua
CANBERRA, Jan. 3 (Xinhua) -- As the Regional Comprehensive Economic Partnership (RCEP) on Wednesday commemorated its third anniversary since entry into force, Australian experts said that the deal has brought economic benefits to the Asia-Pacific region.
The RCEP, the world's largest free trade agreement by members' GDP, has promoted peaceful interactions and cooperation between its member countries, said Wenli Cheng, a senior lecturer in the Department of Economics from Melbourne's Monash University, in a recent interview with Xinhua.
The RCEP agreement was signed in November 2020 by the 15 Asia-Pacific countries after eight years of negotiations. It entered into force on the first day of 2022, creating the world's largest trade bloc.
Cheng said that the great economic benefits of free trade include improving productivity, facilitating the diffusion of technological innovations and promoting competition.
"I hope the RCEP will continue to contribute to peace and development in the Asia-Pacific region and to demonstrate to the world what free and open economies can achieve by working together," she said.
According to Australia's Department of Foreign Affairs and Trade, the RCEP has provided Australian businesses with new and improved access to the fast-growing Asia-Pacific region.
Remy Davison, a senior lecturer in politics and international relations at Monash University, told Xinhua that the RCEP has further integrated the Asia-Pacific economy and regional supply chains.
According to a study conducted by the Asian Development Bank, the RCEP is expected to increase the member economies' incomes by 0.6 percent by 2030, adding 245 billion U.S. dollars annually to regional income and 2.8 million jobs to regional employment.
The scholar believes that protectionism and tariff barriers would pose risks to the world economy.
He said that U.S. President-elect Donald Trump's proposed tariffs, as well as the EU's tariffs on electric vehicles, are part of a protectionist trend among developed economies.
The tariffs imposed during Trump's first term as president were passed on to consumers, fuelling inflation and ultimately costing businesses and customers, Davison said.
The U.S. tariffs are most likely illegal under the rules of the World Trade Organization (WTO), but the refusal by presidents Trump and Joe Biden to appoint new judges to its Appellate Body has essentially frozen the WTO, Davison said.
Australia's Treasurer Jim Chalmers said in November that his country would not be immune from the escalating trade tensions that might ensue from Trump's proposed tariffs.
The Mid-Year Economic and Fiscal Outlook, which is delivered annually in December to update Australians on the state of the government's fiscal performance, showed the government is expecting lower prices for Australian commodities, which Davison identified as a consequence of tariff barriers.■