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Trade Agreements Largest

13 Temmuz 2023

Trade Agreements Largest: Top Deals to Watch Out For in 2021

Trade agreements have become an essential part of global commerce as countries aim to create mutually beneficial partnerships that will boost their economies. These agreements are designed to reduce trade barriers and foster cooperation between nations, leading to increased investment, job creation, and economic growth. In this article, we`ll take a look at some of the largest trade agreements and partnerships being discussed in 2021.

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

The CPTPP is a free trade agreement between 11 countries around the Pacific Rim, including Canada, Japan, Australia, Vietnam, and Chile. It was originally proposed as the Trans-Pacific Partnership but was renegotiated and renamed after the United States withdrew from negotiations in 2017.

The CPTPP has a combined GDP of over $13 trillion and covers a wide range of industries, including agriculture, manufacturing, and services. It eliminates tariffs on 95% of goods traded between member countries and sets new rules on intellectual property, labor rights, and environmental protection.

The Regional Comprehensive Economic Partnership (RCEP)

The RCEP is a trade agreement between 15 countries in the Asia-Pacific region, including China, Japan, South Korea, and members of the Association of Southeast Asian Nations (ASEAN). It was signed in November 2020 after eight years of negotiations and covers a market of over 2.2 billion people.

The RCEP seeks to reduce barriers to trade and investment in the region, including tariffs and non-tariff barriers such as customs procedures and intellectual property rights. It also includes provisions on e-commerce, intellectual property, and state-owned enterprises.

The African Continental Free Trade Area (AfCFTA)

The AfCFTA is a free trade agreement between 54 African nations, making it the largest free trade area in the world by the number of participating countries. It was signed in 2018 and officially launched in January 2021.

The AfCFTA aims to create a single market for goods and services on the African continent, with the goal of doubling intra-African trade by 2030. It eliminates tariffs on 90% of goods traded between member countries and includes provisions on investment, intellectual property, and competition policy.

The United States-Mexico-Canada Agreement (USMCA)

The USMCA is a free trade agreement between the United States, Mexico, and Canada, replacing the North American Free Trade Agreement (NAFTA). It was signed in 2018 and entered into force in July 2020.

The USMCA includes provisions on digital trade, intellectual property, and labor standards. It also includes new rules of origin for the automotive industry, requiring a higher percentage of North American-made components to qualify for duty-free treatment.

Conclusion

Trade agreements can have a significant impact on global commerce, shaping the relationships between nations and boosting economic growth. The agreements mentioned above are some of the largest in the world, covering billions of people and trillions of dollars in trade. As countries continue to negotiate and sign new trade deals, businesses and consumers alike will need to stay informed about the changes they bring. By keeping an eye on these and other trade agreements, you can gain insights into new opportunities and risks in the global economy.