The trade agreement allows China – by far the largest economy and the most populous country in the region – to call itself “a champion of globalization and multilateral cooperation,” Gareth Leather, Asia`s chief capital economic economist, said in a report. The conflict escalated into a trade dispute that affected a dozen Australian industries and threatened billions of dollars worth of exports of agricultural products, wood and resources to China. Australia hopes the trade deal will improve relations with China, its largest trading partner. However, it sets rules for trade that facilitate investment and other business in the area, said Jeffrey Wilson, research director at the Perth USAsia Center. Chinese Premier Li Keqiang celebrated the signing of the agreement in a speech at the summit, saying: “The signing of the RCEP is not only a milestone in East Asian regional cooperation, but also a victory for multilateralism and free trade.” Japanese Prime Minister Yoshihide Suga on Saturday reaffirmed his government`s support for “the expansion of a free and fair economic zone, including the possibility of India`s future return to the agreement, and hopes to win the support of other countries.” Efforts to close the development gap and expand trade among ASEAN members are essential elements of the political debate. According to a 2008 research mandate published by the World Bank as part of its “Trade Costs and Relief” project,[11] ASEAN members have the potential to reap significant benefits from investment in new trade facilitation reforms, as a result of the important customs reform already implemented by the ASEAN Free Trade Agreement. An international agreement entitled: Agreement establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA), signed on 27 February 2009 in Cha-am, Phetchaburi, Thailand, has created a free trade area between ASEAN countries, Australia and New Zealand. [13] The AFTA agreement was signed in Singapore on 28 January 1992. When the AFTA agreement was originally signed, ASEAN had six members: Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand. Vietnam joined the country in 1995, Laos and Myanmar in 1997 and Cambodia in 1999. The AFTA now includes the ten ASEAN countries. The four laggards had to sign the AFTA agreement for ASEAN membership, but were given longer delays in complying with THE AFTA tariff reduction obligations.

“It is essential that partners like China, when they enter into new agreements like this, not only provide the details of such agreements, but act faithfully to their minds,” Birmingham told The Age newspaper. ASEAN has concluded a number of free trade agreements with other Asian countries that are radically changing the global public procurement and production landscape.