Asia Trade Pact Draws US Allies Toward China

U.S. trade experts are watching warily as the world’s biggest free trade pact advances slowly toward ratification and brings some of America’s closest Asian allies into an economic bloc that includes China but leaves the United States on the sidelines.

Analysts in Australia and New Zealand — both signatories to the Regional Comprehensive Economic Partnership, or RCEP — have a more mixed view of the agreement, suggesting it holds both benefits and challenges for the United States. Concluded in November 2020 after eight years of negotiations, RCEP embraces all 10 members of the Association of Southeast Asian Nations as well as Australia, China, Japan, New Zealand and South Korea. Collectively the countries account for about 30% of global GDP. China, Japan and two ASEAN countries have already ratified the pact. To take effect it must still be ratified by four more ASEAN members and one more non-ASEAN member.