RCEP: IMPLICATIONS AND CHALLENGES FOR THE EUROPEAN UNION IN A CHANGING GLOBAL ECONOMY

Abstract

The Regional Comprehensive Economic Partnership (RCEP), emanating from the core principles of the Association of South East Asian Nations (ASEAN), represents a significant evolution in regional economic cooperation. This article delves into the intricate dynamics of RCEP, emphasizing its inception, growth, and the profound implications it holds for the European Union (EU). Tracing the history of ASEAN and its expansion, the paper examines how the ASEAN's Free Trade Agreements (FTAs) with nations outside Southeast Asia, including China, South Korea, New Zealand, Australia, and India, laid the groundwork for RCEP. The study highlights the strategic objectives of RCEP in fostering trade liberalization and economic integration among its member states, while also addressing disputes and promoting regional stability. The signing of RCEP in November 2020 marked a pivotal moment in Asia-Pacific economic relations, promising significant shifts in global trade dynamics. This research critically analyses the potential impact of RCEP on the EU, particularly in terms of trade, foreign direct investment (FDI) inflows, and the broader implications for the global multilateral trading system. The paper also explores how RCEP could reshape the EU's role and strategies in regional and global economic contexts, assessing the challenges and opportunities it presents for EU-ASEAN collaborations. The evolving relationship between Southeast Asia and the EU under the shadow of RCEP, including the promotion of regional trade at micro and macro levels, forms a critical part of this analysis. The study aims to provide comprehensive insights into the multifaceted effects of RCEP on the EU, offering valuable perspectives for policymakers and stakeholders in both regions.