Australia hopes the trade deal will improve relations with China, its largest trading partner. Read more: The Real Winners of the U.S.-China Trade Dispute The trade agreement allows China – by far the largest economy and the most populous country in the region – to emerge as the „champion of globalization and multilateral cooperation,“ said Gareth Leather, Asia`s chief economist for Capital Economics, in a report. APEC recognizes the important role that regional trade agreements (ATRs) and free trade agreements (FTAs) can play in trade liberalization in the APEC region. APEC is continuing its work on free trade agreements and regional trade agreements (ATFs) in the region to promote regional economic integration. There is a lively debate on the impact of free trade agreements (FTA) on the East Asian economy. On the one hand, there are those who believe that the agreements are harmful and troublesome and, on the other hand, there are some clear positive effects on regional liberalization and a constituent element of multilateral liberalization. There is a lack of data at the enterprise level that has made it difficult to resolve this debate. The new free trade bloc will be larger than the agreement between the United States, Mexico and Canada and the European Union. Read also: APEC Summit: Free Trade in Asia in the Age of Protectionism Read more: Joe Biden is hardly the free distributor on which Asia is overflowing, Chinese Premier Li Keqiang celebrated the signing of the agreement in a speech at the summit: „The signing of the RCEP is not only a milestone in the regional cooperation of East Asia, but also a victory for the The China-backed agreement is seen as an alternative to the Trans-Pacific Partnership (TPP), a Washington trade initiative that no longer exists. „Ratification is likely to be difficult in national parliaments, both because of anti-commercial and anti-Chinese sentiment,“ he added. This new analysis proposes to examine two key areas, including port facilities and competitiveness in Internet services.
According to the report, reforms in these areas could increase ASEAN trade by 7.5% ($22 billion) and 5.7% ($17 billion). On the other hand, a reduction in tariffs on all ASEAN members on the South-East Asia regional average would increase intra-regional trade by about 2% ($6.3 billion).  ASEAN national authorities are also traditionally reluctant to share or cede sovereignty to the authorities of other ASEAN members (although ASEAN trade ministries regularly conduct cross-border visits to conduct on-site inspections as part of anti-dumping investigations). Unlike the EU or NAFTA, joint teams to ensure compliance and control of violations have not been widely used. Instead, ASEAN national authorities must rely on the verification and analysis of other ASEAN national authorities to determine whether AFTA`s measures, such as the rule of origin, are being complied with. Differences of opinion may arise between national authorities. Again, the ASEAN secretariat can help resolve a dispute, but it has no right to resolve it. Although China already has a number of bilateral trade agreements, this is the first time it has signed a regional multilateral trade pact. In the longer term, Li called the agreement a „victory for multilateralism and free trade.“