On November 11, the Center for Asian Business D.K. Kim Foundation Lecture Series, in collaboration with the Center for International Business Education, presented a webinar titled “Regional Free Trade Agreement in Asia-Pacific” featuring William Reinsch, senior adviser and Scholl Chair in International Business, Center for Strategic & International Studies, and Deborah Elms, executive director, Asian Trade Centre. The talk was moderated by Brian Peck, executive director, Center for Transnational Law and Business, USC Gould School of Law.
The panelists discussed the differences between the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP). The purpose of free trade agreements is to expand global market opportunities for producers and exporters. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a free trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, Peru, New Zealand, Singapore and Vietnam. The Regional Comprehensive Economic Partnership (RCEP) is a free trade agreement among the Asia-Pacific nations of Australia, Brunei, Cambodia, China, Indonesia, Japan, South Korea, Laos, Malaysia, Myanmar, New Zealand, the Philippines, Singapore, Thailand and Vietnam.
Dr. Elms explained implications involved in the RCEP. “I think it will accelerate Asian growth, even though the very early stages of RCEP will be more modest in impact on direct bottom-line for companies than you might have hoped,” said Elms. Benefits from RCEP could also arise from stronger production networks, which have driven trade and growth within the region and across the globe. Elms emphasized the positive impacts of RCEP that could potentially lead to the creation of more regulatory reforms, new labeling laws, and new standards which would be conducive to economic development. Elms contrasted these considerations with the CPTPP. “Unlike RCEP which has long time frames and loopholes, CPTPP has fewer loopholes. After four years of running, we are at near tariff-free for all goods in the CPTPP countries which is especially beneficial for small businesses,” said Elms. Overall, free trade agreements often encourage ongoing structural reforms by strengthening domestic policy and institutional frameworks which promotes efficiency and productivity.
William Reinsch elaborated on the laws of free trade agreements and its implications on U.S. trade policy. “There’s a genuine concern in the United States that these companies could be used to undermine our security which has become an element of our trade policy consideration,” said Reinsch. Additional concerns of the Biden Administration are violations of human rights and forced labor. “That’s a concern that transcends China in particular, but in Asia that is obviously the place where it is very much an issue and is in the minds of many western countries,” he said. With respect to the current bills pertaining to the U.S. economy, Reinsch explained that the Biden Administration is devoting substantial amount of government resources to ensure that American manufactures are more innovative and competitive.
LMU Center for International Business Education extends its appreciation to the D.K. Kim Foundation and the U.S. Department of Education for their support.
View the webinar here.
