[UNCTAD] Global Investment Trend Monitor No. 37: RCEP Agreement

08/06/2021    69

Time: 11/2020

By: United Nations Conference on Trade and Development (UNCTAD)

The Regional Comprehensive Economic Partnership (RCEP) agreement, signed on 15 November 2020, is one of the world’s largest trade and investment pacts. It could give a significant boost to foreign direct investment (FDI) in the region.

The investment provisions in the agreement mostly consolidate existing market access as contained in myriad bilateral agreements. However, the provisions related to market access and disciplines in trade, services and e-commerce are highly relevant for regional value chains and market-seeking investment.

A key challenge for the RCEP will be to follow through on economic integration efforts at a time of global and intra-regional geopolitical and trade tensions. The global economic recession caused by the pandemic will also limit the potential of RCEP to expand trade, investment GVCs in the short term.

This monitor provides an overview of current state of foreign direct investment in the region and assesses the potential contribution that the RCEP agreement could make to investment flows. It focuses on implications for development, regional value chains and post-COVID recovery prospects

The Monitor is attached below: