2018/2019 Edition of the Global Regulatory Update

the Association of South East Asian Nations (ASEAN) – Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam – and ASEAN’s six Free Trade Agreement (FTA) partners, Australia, New Zealand, Japan, China, Korea and India. RCEP talks started in Phnom Pen, Cambodia, in November 2012. The 16 countries account for over a quarter of the world’s economy, estimated to be more than USD 75 trillion. It is proving challenging to finalize the RCEP. Many RCEP countries are reluctant to open their domestic markets and RCEP countries vary significantly in terms of their development. There remain 15 outstanding topics to be agreed to by all 16 players. Finalization may take several years and the impetus may slow down with the agreement to move ahead with the TPP without the U.S. (see below). TPP-11 (TPP minus the U.S.) After the U.S. formally withdrew from the Trans-Pacific Partnership (TPP) free trade pact, the remaining 11 members signed a revised agreement called the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in March 2018. The TPP 11 members comprise Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Thailand has expressed a willingness to join the pact. Indonesia and Korea have been muted as other countries that might seek to join. The CPTPP will take effect after at least six member countries ratify it. Mexico has already completed its domestic procedures. On 29 June 2018, Japan enacted legislation necessary for the completion of domestic procedures ahead of ratification of the CPTPP. Similarly in Australia, the CPTPP was referred to Joint Standing Committee on Treaties of Australian Parliament which completed its final public hearing on 25 June 2018. It is expected that the process that will lead to ratification in Australia will continue into September 2018.