The difficulties facing the United States in marketing TPP (Trans-Pacific Partnership) free trade agreement model and the intense competition between the world’s two largest economies to gather greater market share in the Asian region.
The RCEP (Regional Comprehensive Economic Partnership) is an Association of Southeast Asian Nations (ASEAN) trade agreement connecting the economies of 16 Asia-Pacific countries, with nonexistence of the United States.
They comprise all 10 ASEAN nations – Brunei, Myanmar, Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand and Vietnam – and six other countries with which the group has free-trade agreements – China, India, Japan, South Korea, Australia, and New Zealand.
The TPP, on the other hand, consists of an initial group of 11 negotiating countries led by the United States but excluding China. Others included are Brunei, Chile, Singapore, and New Zealand, Australia, Peru, Vietnam, Malaysia, Mexico, and Canada.
There is an overlap in participation, with six of the 16 RCEP members also involved in the TPP. Three other RCEP participants – Indonesia, Philippines, and Thailand – have also expressed initial interest in participating in the TPP.
RCEP members expected to launch negotiations this year, the United States wants to launch of the TPP in October.
The 16th round of negotiations for the Pacific pact will be held in Singapore next month and three negotiating rounds are scheduled this year prior to the October 2013 Asia-Pacific Economic Cooperation (APEC) forum summit in Indonesia, the current target for reaching an agreement.