Comprehensive Economic Partnership Agreement Research Articles

RCEP: a strategic opportunity for multilateralism

ABSTRACT East Asia’s Regional Comprehensive Economic Partnership (RCEP) agreement was concluded in a time of heightened uncertainty in the global economy and in the middle of the largest economic downturn in almost a century from a pandemic-induced global recession. The agreement consolidated the 10 member ASEAN’s free trade agreements with Australia and New Zealand, and the three northeast Asian economic powers China, Japan and South Korea. RCEP's economic cooperation agenda incorporates ASEAN processes which go beyond helping countries to implement the agreement and has potential to expand cooperation to new areas. This economic cooperation process makes RCEP a living agreement that can serve the needs of members as they evolve. It can also be used to embrace non-RCEP members, especially India, around particular agendas. The agreement is an important opportunity for China to use the RCEP framework to trial reforms and demonstrate its commitment to broader international multilateral liberalisation and economic cooperation.

“RCEP from the middle powers’ Perspective”

ABSTRACT East Asian countries signed the Regional Comprehensive Economic Partnership Agreement (RCEP) in November 2020. This paper demonstrates the importance of ASEAN centrality in East Asian economic integration and makes a preliminary assessment of the agreement in terms of the four expected roles: liberalization, rulemaking, reducing policy risks, and forming a pro-trade middle power coalition. The comparison with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) reveals the strengths and weaknesses of RCEP. The paper emphasizes the importance of dynamic aspects of mega-FTAs after being in effect and claims that RCEP must be further developed as an evolving agreement.

Indonesia-australia comprehensive economic partnership agreement (iacepa) in economic recovery during the covid-19 period

This article intends to explain the impact of the IA-CEPA agreement in restoring economic conditions during the Covid-19 period, especially in the fields of trade, investment, health and tourism. IA-CEPA, which takes effect from 5 July 2020, is a comprehensive partnership between Indonesia - Australia in the fields of trade in goods, investment, services, and also economic cooperation. This research is qualitative in nature by collecting data through literature study. The analysis knife in this research is international cooperation and bilateral relations. Apart from discussing trade in goods, the IA-CEPA agreement also encourages strategic partnerships in the fields of investment, economy, health, increasing labor capacity, trade in services, transportation, tourism and so on. The results of this study conclude that the IA-CEPA made a real contribution to economic recovery during the Covid-19 period. In the investment and trade sector, Australia provides loans to Indonesia to help the business world. In the health sector, cooperation is focused on the production of masks, medical devices and medical personnel. Meanwhile, in the field of tourism, the two countries are trying to increase the return of tourist visits by still paying attention to health, safety and tourism needs. Thus, the signing of the IA-CEPA illustrates the realization of good bilateral relations in which the two countries contribute to economic recovery during the Covid-19 period. © 2021 Karadeniz Technical University. All rights reserved.

The roles of export diversification and composite country risks in carbon emissions abatement: evidence from the signatories of the regional comprehensive economic partnership agreement

ABSTRACT The ratification of the Regional Comprehensive Economic Partnership (RCEP) agreement has laid the platform for the signatory nations to boost their respective economic growth rates, and also raised environmental concerns. So far, little is known regarding the roles of export diversification and the composite risk index in the abatement of carbon dioxide (CO2) emissions for the RCEP countries. Accordingly, this study investigates the impacts of export diversification and composite risk index on CO2 emissions for the RCEP countries between 1987 and 2017. The empirical findings indicate that lowering the composite risk index, undertaking a transition to renewable energy, and enhancing environmentally-related technological innovations help reduce CO2 emissions in the long run. In contrast, export diversification is found to monotonically boost CO2 emission levels. The findings also authenticate the environmental Kuznets curve (EKC) hypothesis to certify that the economic growth of the RCEP nations will be both an initial contributor and ultimate inhibitor of CO2 emissions. In line with these findings, it is important to lower the country risk profiles of the RCEP nations, restructure the export diversification schemes, ensure technological advancement and expedite economic growth in an environmentally-friendly manner.

Peran Direktorat Jenderal Imigrasi Sebagai Fasilitator Pembangunan Masyarakat dalam Skema Kerjasama IA-CEPA

The Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) which was approved in 2019 needs to be supported by policies in various sectors in order to create a positive-sum game for both parties. This study aims to analyze the role of the Directorate General of Immigration in the framework of IA-CEPA Cooperation. This research uses a descriptive qualitative method. The data collection method uses a secondary data method. The result shows that the Directorate General of Immigration already has policies that can be used in the IA-CEPA scheme. Those policies include the APEC Businessman Travel Card (KPP APEC) and the Working Holiday Visa (WHV). Both policies have long been used before the IA-CEPA was approved, but can still be used within the framework of this partnership cooperation since it gives facilities for border crossing. Thus, The Directorate General of Immigration has carried out its function as a facilitator of society development in terms of providing immigration facilities for human movement under the IA-CEPA scheme.Keywords: Directorate General of Immigration, IA-CEPA,KPP APEC,Working Holiday Visa

The Regional Comprehensive Economic Partnership Agreement and Its Expected Effects on World Trade

The Regional Comprehensive Economic Partnership agreement creates the world’s largest free trade zone. The agreement has the potential to increase trade relations among its members and further promote the development of regional value chains in “Factory Asia”. This article presents the topics included in the recently concluded agreement, details the existing economic linkages between its members and discusses the expected consequences for its member states and third countries.

Asian Voices on the Future of US-Asia Relations: Trade and Economic Policy under the Biden Administration

President-elect Joseph Biden faces challenges both at home and abroad in the aftermath of the Trump administration. The COVID-19 pandemic has deeply affected the United States, with over 23.5 million reported cases by early 2021. Much like many nations under lockdown and reeling from supply disruptions and the chilling effect on demand, the US economy is forecasted to shrink in the near term. It is expected to contract by 4.3% in 2020, with a tentative rebound of 3.1% growth in 2021. The roll-out of vaccines in the US commenced in late 2020, and it is a welcome precursor of health and economic recovery, but the second stimulus package was delayed. Meanwhile, the Democrats managed to flip two Senate seats in Georgia, and thus maintain a slim control in both the Senate and the House of Representatives. Nevertheless, unprecedented political turmoil erupted in Washington, D.C. in early January, prior to the inauguration, signalling a difficult and noisy transition to the next administration. Abroad, the one-two punch of the pandemic and populist wave may continue to push many nations towards protectionism, even as multilateralism has been in retreat even before the pandemic. Part of the populist wave was driven by a push-back against globalization, owing to factors such as its un-equalizing impact as well as valid concerns over dominant lobbying by corporations and weak influence from the labor sector. In Asia, the Trump administration abandoned the Trans-Pacific Partnership Agreement while turning to protectionist rhetoric (and some tentative policies) against trading partners like China, Canada and Mexico. Most of these were short-lived as they amounted to more self-harm than any strategic benefits to the US or key segments of the population like its blue-collar workers. Meanwhile, the other TPP countries moved ahead and form the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) even without the US.Meanwhile, China’s sphere of influence in Asia expanded, as the US withdrawal from its traditional leadership role in the multilateral and regional economic policy discussions was matched by a ratcheting of China’s ambitions to solidify its position as a political, economic and military power. The Regional Comprehensive Economic Partnership Agreement (RCEP) was finally signed in November 2020 producing the largest agglomeration of potential consumers (about 2.2 billion people) of any regional trade agreement conceived. And it is seen as the competing China-influenced framework vis-a-vis the TPP which intended as a centerpiece of the US pivot to Asia under President Obama. In addition, China’s ambitious infrastructure plan--the Belt and Road Initiative (BRI)--intended to fuel economic integration in the region while inter-connecting it with key markets in Europe and the Americas. Rather than channel all its resources into existing multilateral platforms, China has also advanced alternative financial institutions such as the Asian Infrastructure Investment Bank (AIIB) and the Silk Road Fund. China’s influence on “writing the rules” for regional economic integration has been increasing, yet it is not clear to what extent these new rules and institutions reflect existing norms in international cooperation.

Taiwan — A Potential Economic Partner of South Asia

Taiwan is a major hub of the global supply chains and one of the leading investors not only in China but also in other Southeast Asian markets. Although high trade complementary, bilateral trade between South Asia and Taiwan is only about US$ 9 billion, investment has only picked up recently. The computable general equilibrium (CGE) analysis indicates a substantial economic benefit of bilateral tariffs elimination between Taiwan and its South Asian partners. Taiwan has a substantial comparative advantage in producing high tech manufacturing goods while in South Asian’s main strength is in the resource-based agricultural and light manufacturing sector. Taiwan has been maintained a liberalized trade regime with minimal import tariffs and non-tariff measures (NTM) over the decades. As South Asia is booming, and Taiwan is seeking alternative markets and investments opportunities, it is time to deepen a bilateral economic relationship. South Asia is a market of 1.5 billion people with an emerging middle class along with substantial cheaper labor forces, made an ideal place for investment. A comprehensive economic partnership agreement (CEPA) with a preferential trade and investment agreement would be useful to attract Taiwanese multinationals and seamless trade between South Asia and Taiwan.

Comparative Analysis of the Tax Burden Level of RCEP Countries

The tax burden level of the host country is an important factor influencing the location of foreign investment. The successful signing of the Regional Comprehensive Economic Partnership Agreement is of great significance to RCEP countries. It is of great significance to promote the negotiation of regional multilateral tax treaties. Therefore, it is necessary to actively promote the negotiation of tax treaties between China and other RCEP countries, form a regional tax coordination mechanism, and create a transparent and stable environment for Chinese enterprises' foreign direct investment to achieve low-cost and high-efficiency regional trade. At the same time, it is necessary to speed up the establishment of a tax preferential policy system for China's foreign direct investment, reduce the tax cost of enterprises' foreign direct investment, and effectively reduce the tax burden of multinational investment enterprises.

Indo-Japan Comprehensive Economic Partnership Agreement (IJCEPA): Lessons for India's access to agricultural markets

Indo-Japan Comprehensive Economic Partnership Agreement (IJCEPA): Lessons for India's access to agricultural markets

Potential agro-industrial commodities for the development of Indonesia-Turkey economic partnership

Indonesia and Turkey have different geoclimates which cause each country to produce different agricultural commodities. This presents a great opportunity for the two countries to trade these different commodities. Turkey and Indonesia have had a commercial, diplomatic, and military relationship since the 16th century as the Ottoman Empire and Aceh Sultanate. After both countries established as republic and independent countries, the bilateral relationship between two countries was rebuilt with the first trading agreement signed on September 14, 1958, followed by other cooperation and partnership agreements later on. At present, the bilateral relations between the two countries, especially in the economic sector are increasing. With the latest bilateral agreement, Indonesia-Turkey Comprehensive Economic Partnership Agreement (IT-CEPA), launched on July 6, 2017, economic cooperation between the two countries is expected to increase even more. Even though each year the value of trade between the two countries has increased, but those numbers are still far below the potential of the two countries. Therefore, it is necessary to increase trade commodities from both countries, especially agro-industrial commodities. This paper aims to provide a brief overview of some potential agro-industrial commodities to increase trade value between Indonesia and Turkey.

Comparative Analysis of the Trade Relations of Argentina-Indonesia and Chile-Indonesia:

Chile and Argentina have put their radars on trade with Southeast Asian countries, in which Indonesia appears as one of the main countries. In recent years, Chile has had a more aggressive trade policy towards Indonesia. The most recent proof has been the signing of the Indonesia - Chile Comprehensive Economic Partnership Agreement (IC-CEPA), which entered into force in 2019. The objective of this article is to present a comparative analysis of trade flows between Argentina - Indonesia and Chile - Indonesia, looking for similarities and differences between both types of bilateral ties, so that they can serve as models to improve existing relations, learning from what it has happened in each one of them.

Free and Open Indo-Pacific in Defense Cooperation between Indonesia and Australia

Indonesia and Australia are two neighboring countries with different cultural characteristics and patterns of international relations. This research aims to formulate a pattern of strategic partnerships between Indonesia and Australia in the field of defense cooperation. Through the symbolic interactional approach, the researcher saw actors' behavior between countries by collecting data from various sources; online newspapers, scientific articles, interviews, and discussions illustrated the pattern of defense cooperation between Indonesia and Australia at three levels. At the multilateral level, the relationship between Australia and Indonesia looks rather difficult to reciprocate. At the regional level, especially in the Southeast Asia region, Indonesia and Australia cooperation in non-binding control, and on the bilateral level Indonesia and Australia as equal partners are equally committed to mutual control. Free and Open Indo-Pacific strengthens Indonesia-Australia cooperation in the trade sector. An agreement has been built and ratified into the Indonesia-Australia Law comprehensive economic partnership agreement (IA-CEPA). Thus the internal politics of the alliance is very dynamic. On the one hand, the United States strengthens its dominance by utilizing regional countries challenging Chinese policies as bilateral partnerships. On the other hand, multilateral allies help each other. Development between border countries in various ways for defense development.

IMPLICATIONS OF THE PRINCIPLE OF NON-DISCRIMINATION IN THE INDONESIA-EUROPEAN UNION COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT ON GOVERNMENT PROCUREMENT CHAPTER TOWARD REGULATIONS OF DOMESTIC PRODUCT USE IN INDONESIA

This article aims to explain the differences between regulations on the use of domestic product in Indonesia and the principle of non-discrimination in Indonesia-European Union Comprehensive Economic Partnership Agreement (I-EU CEPA) on Government Procurement Chapter and the legal consequences for domestic regulations in Indonesia. The research method used is a normative juridical method with exploratory specifications. The results of this study indicate that the principle of non-discrimination, which consists of most favored-nation treatment and national treatment in the I-EU CEPA on Government Procurement Chapter, differs from regulations in Indonesia because the use of domestic product is mandatory in the government procurement and discriminatory against foreign suppliers. The difference in these provisions has implications, namely if Indonesia and the European Union agree to the I-EU CEPA, they must adjust the regulations for the use of domestic product in accordance with the principle of non-discrimination in the I-EU CEPA or World Trade Organization Agreement on Government Procurement (WTO GPA) or ratify the I-EU CEPA in the form of a Law and its enforcement is lex specialis and it is necessary to make adjustments to the implementing regulations by giving time after entry into force. In addition, Indonesia does not have the obligation to provide equal treatment to third countries because the I-EU CEPA is a bilateral agreement and Indonesia is not yet bound by a multilateral agreement, namely the WTO GPA. In addition, if Indonesia and the European Union agree to an I-EU CEPA, the Indonesian side cannot cancel it on the grounds that it violates the provisions of national law.

Domestic Sources of India’s Trade Policy Preferences in RCEP Negotiations

After negotiating for seven years, fifteen member countries of the Regional Comprehensive Economic Partnership (RCEP) agreement concluded text-based negotiations on 4 November 2019 at a summit held in Bangkok, conveying that participants will sign the agreement in 2020. However, India refused to join the RCEP agreement on the ground that its ‘outstanding and domestic concerns’ remained unresolved. This article examines key factors that shaped India’s decision not to participate in the RCEP. To examine these key factors, two-level game literatures are used to focus on domestic factors and interest groups explaining the role of actors that shaped India’s trade policy preferences regarding the RCEP. Specific cases from the steel and agricultural sector are used to examine powerful sector-specific interest groups in this article. Findings show that powerful and well-organized interest groups within the steel sector successfully pressurized the government to withdraw from the RCEP. In the agricultural sector, interest groups are fragmented, but because of their large number as an electoral group, farmers and workers provided power to influence the government to opt out from the RCEP. RCEP negotiations, free trade agreements, India, WTO, sector-specific groups, domestic lobby, interest groups, and industry associations

India-Japan Trade : A Review

India and Japan have a strong trade partnership, where Japan ranks in top five investors in terms of Foreign Direct Investment (FDI) in India. This investment has injected funds into many developmental projects, helping India in strengthening its infrastructure and resource base. However, after exiting the Regional Comprehensive Economic Partnership (RCEP) in 2018, India had a major trade agreement with Japan and South Korea namely, the Comprehensive Economic Partnership Agreement (CEPA). This paper is an attempt to study the mutual benefit claim in International Economics, taking the case of India and Japan. The paper aims to review the (1) Japanese Investment in India and (2) the Trade Opportunities due to CEPA.

A Critique Towards Australian Work and Holiday Visa Subclass 462: Where Does It Leave Indonesian Citizen?

Work and Holiday Visa (WHV) is one of the product outcomes from the agreement that Australia engaged with state partners. Initially, this visa aims for cultural exchange and then shifted to supply the needs of Australian industry. In essence, this visa granted the holder one year to spend time in Australia consisting of six months for working and six months for travelling. However, in its application, there are mistreatments on the WHV holder, and there is no sufficient labour protection towards the worker. This paper examines the position of WHV holder in Australia, protection for the worker, and the view of the Indonesian Government on the WHV. It also discusses the Indonesia – Australia Comprehensive Economic Partnership Agreement (IA-CEPA) on the WHV context since there is a provision regarding WHV in the agreement. The paper concludes that the WHV is not a mere cultural exchange program, but a type of labour migration. The fact that Government of Indonesia still considered WHV as a cultural program is not enough for the safety of Indonesian citizens which partakes the program, it should be governed by the labour law and provided by sufficient protection. The Government of Indonesia failed to see this as part of their scope of protection in IA-CEPA, and the Australian Government also did not set a clear context on WHV. Therefore, the GOI should shift its view on the WHV and take necessary measures to provide better labour protections under this scheme.

Trade policy preferences: a case of Thailand

Trade policy implementation is a sensitive issue and can be complicating. Without taking the micro information into account, trade policy administration can be considered as half-blinded. The logit and probit techniques are employed to assess the determinants of people's support for such trade issues as, people's support for trade liberalisation policy, being a member of ASEAN, and taking part in Regional Comprehensive Economic Partnership (RCEP) and other Free Trade Agreements (FTAs). The Bangkok people are likely to be defensive toward the newly enforced policy. The foreign exposure urges liberalisation perspective. The Stolper-Samuelson theory is valid only in the case of ASEAN labour market liberalisation.

Developmental peace in east Asia and its implications for the Indo-Pacific

Abstract This article adopts a constructive approach to examining the problem of the Indo-Pacific construct. Through reflection on the east Asian experience, it proposes an analytical framework of developmental peace as a constellation of international practices, which means that the more economic development is prioritized by states in regional processes, the more likely it is that a sustainable peace will be achieved. States participating in regional integration comprise a community of practice. On the basis of a shared understanding that development is of overriding importance and underpins security and state legitimacy, the community takes economic development as the anchoring practice; this practice embodies and enacts constitutive rules and fundamental norms for a broader set of practices in regional processes, such as peaceful coexistence and non-interference. The more economic development is prioritized on domestic and regional agendas, the more likely it is that conflicts in the security realm will be relaxed or even resolved to protect security interests. The author draws some useful implications from the developmental peace in east Asia for the Indo-Pacific construct, among which the most important include building shared understandings on the prioritization of economic development, taking advantage of the Regional Comprehensive Economic Partnership (RCEP), Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Asian Infrastructure Investment Bank, and using the code of conduct process as a vehicle and best practice to facilitate rule-making for the maritime order. Finally, the author briefly discusses the contributions of the study and limitations of the model.

India’s Readiness for the Regional Comprehensive Economic Partnership Through the India–Japan Partnership

India and Japan are engaged in a strategic and comprehensive economic partnership. However, some major powers have different interests that may delay the conclusion of the Regional Comprehensive Economic Partnership (RCEP). India and Japan were among the 14 countries that initially joined the RCEP, but India has since opted to stay out, pending resolution of outstanding issues. This study aims to examine the India–Japan strategic partnership in the development of the RCEP and measure the saving potential of the India–Japan Comprehensive Economic Partnership Agreement, employing an ex-ante analysis with scenarios based on zero tariffs. These political and economic partnerships play an essential role for both countries at the regional level. India and Japan have good economic and political relations that could enhance the feasibility of India rejoining the RCEP. The results of the saving potential analysis show that both countries have gained benefits from the economic partnership.