亞開行-亞洲及太平洋區(qū)域全面經(jīng)濟伙伴關(guān)系的經(jīng)濟影響（英）-2021.10-34正式版

ECONOMICIMPLICATIONSOFTHEREGIONALCOMPREHENSIVEECONOMICPARTNERSHIPFORASIAANDTHEPACIFIC

Cyn-YoungPark,PeterA.Petri,and

MichaelG.Plummer

NO.639

October2021

ADBECONOMICSWORKINGPAPERSERIES

ASIANDEVELOPMENTBANK

ADBEconomicsWorkingPaperSeries

EconomicImplicationsoftheRegionalComprehensiveEconomicPartnershipforAsiaandthePacific

Cyn-YoungPark,PeterA.Petri,and

MichaelG.Plummer

No.639|October2021

Cyn-YoungPark(cypark@)isadirectorattheEconomicResearchandRegionalCooperationDepartment(ERCD),AsianDevelopmentBank(ADB).PeterA.Petri(ppetri@)isaprofessoratBrandeisInternationalBusinessSchool,andanon-residentseniorfellowattheBrookingsInstitution.MichaelG.Plummer(mplummer@)isthedirectoroftheSchoolofAdvancedInternationalStudies(SAIS)Europe,JohnsHopkinsUniversity;andanon-residentseniorfellowattheEast-WestCenter.

InadditiontoparticipantsattheADB-ERCDResearchSeminaron3June2021,theauthorsthankSang-HyopLee(UniversityofHawaii),AndrewMason(East-WestCenter),MarinosTsigas(UnitedStatesInternationalTradeCommission),AnnaRobeniol(AssociationofSoutheastAsianNationsSecretariat),CarmenEstrades(UniversidaddelaRepública,Uruguay),andPramilaCrivelli(ADB)forofferinginsightfulcommentsandsharingtheirvaluabledata;andMaraTayagfordatasupport.

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CONTENTS

TABLESANDFIGURES

iv

ABSTRACT

v

I.

INTRODUCTION

1

II.

THEREGIONALCOMPREHENSIVEECONOMICPARTNERSHIPAGREEMENT

2

III.

MODELINGTHEEFFECTSOFTHEREGIONALCOMPREHENSIVE

6

ECONOMICPARTNERSHIPAGREEMENT

IV.

ESTIMATESOFTHEEFFECTSOFTHEREGIONALCOMPREHENSIVE

8

ECONOMICPARTNERSHIPAGREEMENTANDOTHERPOLICIES

A.

AggregateIncomeandTradeEffectsofMajorPolicyChanges

9

B.

LaborMarketImplicationsofTradePolicyDevelopments

12

C.

SourcesofIncomeandTradeGains

14

D.

HowPolicyChangesWillAffectTradePatterns

17

E.

SectoralEffectsofTradePolicies

19

V.

CONCLUSION

21

APPENDIX

23

REFERENCES

26

TABLESANDFIGURES

TABLES

1

ProvisionsoftheComprehensiveandProgressiveAgreementonTrans-Pacific

3

PartnershipandtheRegionalComprehensiveEconomicPartnershipAgreement

2

SpecificationsforSimulatingAsiaandthePacificPolicies

7

3

IncomeEffectsofAsiaandthePacificPolicies

9

4

ExportEffectsofAsiaandthePacificPolicies

10

5

BarriersAppliedtotheRegionalComprehensiveEconomicPartnership

15

ExportsinIntra-RCEPTrade,byExporter

6

BarriersAppliedtotheRegionalComprehensiveEconomicPartnership

19

ExportsinIntra-RCEPTrade,bySector

A1

LaborSupplyElasticities?

25

FIGURES

1

RealReturnstoLaborunderAsiaandthePacificPolicies

13

2

EmploymentEffectsunderAsiaandthePacificPolicies

14

3

CompositionofGlobalIncomeEffectsoftheRegionalComprehensive

16

EconomicPartnership,byLiberalizationInstrument

4

CompositionoftheGlobalTradeEffectsoftheRegionalComprehensive

17

EconomicPartnership,byLiberalizationInstrument

5

ExportChangesunderAsiaandthePacificPolicies

18

6

SectoralandRegionalExportEffectsofAsiaandthePacificPolicies

20

ABSTRACT

TheRegionalComprehensiveEconomicPartnership(RCEP)presentsstrongpotentialtomoldregionaltradeandinvestmentpatternswellintothefutureandtoinfluencethedirectionofglobaleconomiccooperationatachallengingtime.ThispaperevaluatestheRCEPandestimatesitspotentialeffectsonincome,trade,economicstructure,factorreturns,andemploymentusingacomputablegeneralequilibriummodel.TheresultssuggestthattheRCEPagreementcouldgenerateglobalincomegainsthatwillbealmosttwiceaslargeasthoseoftheComprehensiveandProgressiveAgreementonTrans-PacificPartnership(CPTPP).RCEPeffectsontheregion’stradewillalsosignificantlydeepenregionalproductionnetworksandraiseproductivity.Atthesectorallevel,exportsandimportsofnondurableanddurablemanufactureswillexperiencethemostgrowth.TheCPTPPandRCEPwillespeciallystrengthentheregion’smanufacturingsupplychains,increasingwagesandemployment.

Keywords:computablegeneralequilibrium,ComprehensiveandProgressiveAgreementonTrans-PacificPartnership,freetradeagreement,RegionalComprehensiveEconomicPartnership,rulesoforigin,supplychains

JELcodes:F13,F15,F17

INTRODUCTION

The15negotiatingpartiesoftheRegionalComprehensiveEconomicPartnership(RCEP)madehistoryon15November2020bysigningthelargestfree-tradeagreement(FTA)everinsize($26trillioningrossdomesticproduct)andpopulation(2.3billion).Itisthesecond“megaregional”tradeagreementinAsiaandthePacific,followingtheComprehensiveandProgressiveAgreementonTrans-PacificPartnership(CPTPP)thatbecameeffectiveinDecember2018.Thetwoagreementshavethepotentialtomoldregionaltradeandinvestmentpatternswellintothefutureandtoinfluencethedirectionofglobaleconomiccooperationatachallengingtime.

ThispaperevaluatestheRCEPandestimatesitspotentialeffectsonincome,trade,economicstructure,factorreturns,andemployment.Itusesacomputablegeneralequilibrium(CGE)modelbasedoninformationfromthenewlyreleasedRCEPtext.Theresultsidentifyespeciallyimportantareastoparticipatingcountriesandprovideprioritiesforupdatingandexploringthedetailedimplicationsoftheagreement,particularlyasitexpandsinscopeandmembership.

ThepathtotheRCEPwaslonganddifficult.Aftertwodecadesofpreliminarydiscussions,negotiationswerelaunchedinNovember2012foranASEAN-centricagreementthatwouldincludethe10membersoftheAssociationofSoutheastAsianNations(ASEAN)andsix“dialoguepartners”:theNortheastAsianeconomiesofthePeople’sRepublicofChina(PRC),Japan,andtheRepublicofKorea;theOceaniccountriesofAustraliaandNewZealand;andtheSouthAsiancountryofIndia.Thenegotiationsspannedsomeoftheworld’srichestandmostdevelopedeconomieswithsomeofitspoorestandleastdeveloped,constrainingtheambitionoftheagreement.ButdiversitywasalsotheRCEP’sbiggestdraw:itenablesamoreefficientdivisionoflaborandenhancesthepotentialfordeepeningexistingsupplychainsandcreatingmanynewones.

IftheRCEPdeliversonitspromise,itwillbecomeamodelformanagingthediverginginterestsandsensitivitiesofdevelopinganddevelopedeconomiesinanambitiousagreement,withobviousimplicationsforwidermultilateralcooperation.Ittook30roundsofnegotiationsandfoursummitstoconcludetheagreement,butevenso,IndiawithdrewfromtheprocessinitsfinalstagesinNovember2019.ThelossofIndiawasablow,buttheagreementunderscoresthatIndiawouldbewelcomedbackatanytime.1

UnderstandingthevalueaddedoftheRCEPiscomplicatedbytheregion’smultipleexistingFTAs.Forexample,ASEANeconomiesalreadyhaveFTAswitheachother,aswellasanambitiouseconomicintegrationprogramknownastheASEANEconomicCommunity,whichwentintoeffectinDecember2015andcontinuestodeepen.Onewouldnotexpect,apriori,theRCEPtosignificantlylowerintra-ASEANbarrierstotradeandinvestment.ThesamewouldbetrueofbarriersbetweenAustraliaandNewZealand,whoseCloserEconomicRelationsagreementisoneofthemostadvancedFTAsintheworld.Further,allRCEPmembershaveanFTAinplacewithASEAN(aconditiontojoinnegotiations),called“ASEAN+1”agreements,withdifferentscopeandambitions,andmanyhaveFTAswitheachother.WhilethePRCandtheRepublicofKoreaalsohavealimitedFTA,therewasnoregionalFTAbindingthePRC,Japan,andtheRepublicofKoreatogether.TheRCEPwillchangethat.

Chapter20ofRCEPagreementnotesthatallotherapplicantsmustwaitatleast18monthsafterentryintoforceoftheagreement(Table1).

ADBEconomicsWorkingPaperSeriesNo.639

Atthesametime,acomprehensivetemplateaddedtomanyexistingFTAs,alongwithcommonrulestobindthe“noodlebowl”ofbilateralagreementstogether,themselvessuggestsignificantbenefitsfromtheRCEP.Cumulative,commonrulesoforiginbolsterintegrationandenhancetheimpactoftariffreductions.Wellimplemented,consolidatedrules,streamlinedregulatoryprocedures,andexpandedmarketaccesscouldhavegreatimpactonreducingnontariffbarriersinthislargeregion,withcommensuratebenefitsfortrade,investment,andeconomicgrowth.

ThispaperwillshowthattheRCEPislikelytomakesignificantcontributionstotheregionandtheglobaleconomy.By2030,ifimplementationisontrack,weestimatethatitwillincreasemembers’incomesby0.6%,adding$245billionannuallytoregionalincomeand2.8millionjobstoregionalemployment.ThesebenefitswillbemorethantwicethoseprojectedfortheCPTPPagreement.EveryRCEPmemberwillgain,butasexpected,thelargestpercentageincreaseswillberealizedbytheregion’smosttrade-orientedeconomies,suchasMalaysiaandVietNam;theNortheastAsianeconomieswithnopriortradeagreementswitheachother,suchasJapanandtheRepublicofKorea;andcountriesthroughouttheregionthatcaneffectivelyparticipateinregionalsupplychains,includingCambodia,theLaoPeople'sDemocraticRepublic,thePRC,andThailand.

Theresultssuggestespeciallystronggainsintradeandproductionlinks—andthusinproductivity.Increasesintradewillbeapproximately2–3timesaslargeasincreasesinincome,reflectingsubstantialtradeinintermediategoods.Newtradewillmostlyaffectmanufacturingindustriesandtheirsupplychains,butgainsarealsoprojectedforprimarygoodsandserviceflows.

Finally,theresultsunderlinetheimportanceofeffectiveimplementation.Liberalizationofnontariffbarriersingoodsandserviceswillbethemostimportantdriverofprojectedbenefits,accountingforapproximatelytwo-thirdsofthetotaleffectsoftheRCEPonincome.Thiswillrequirecoordinatedchangesindomesticpolicies,partlymanagedbytheagreement’sbuilt-inconsultationmechanisms.Thefullandtransparentimplementationofscheduledtariffcutsandrules-of-originreformswillbealsoessential.

Thepaperisorganizedasfollows.SectionIIreviewsthecontentsoftheRCEPagreement.SectionIIIreviewsthemodelingapproach,andSectionIVsummarizesestimatesoftheimpactoftheRCEPandotherpolicydevelopmentsonincome,trade,economicstructure,factorreturns,andemployment.SectionVconcludes.TheAppendixprovidesfurtherdetailonourCGEmodel.

THEREGIONALCOMPREHENSIVEECONOMICPARTNERSHIPAGREEMENT

TheRCEPisoneofseveralmajorregionalagreementsthathavetakenovertheworkofmodernizingtheglobaltradingsystemgiventhestalemateintheWorldTradeOrganization(WTO)(Pomfret2021).Itincludes20chapterscoveringmostaspectsofcontemporarytraderelations,manyofwhichfollowthechaptersoftheCPTPP,anevenmoreambitiousagreement.2IndiscussingthekeyfeaturesoftheRCEP,wethereforeusetheCPTPPasabenchmarkandincludeitinourpolicysimulations.3

2

3

Foracopyofallchaptersoftheagreementsee.au/trade/agreements/negotiations/rcep/Pages/regional-comprehensive-economic-partnership.aspx

ForeconomicestimatesofCPTPPexpansionscenarios,includingthepotentialaccessionofthePRCandfiveotherEastAsianeconomieswhichhaveexpressedinterestinjoining,seePetriandPlummer(2019).

EconomicImplicationsoftheRegionalComprehensiveEconomicPartnershipforAsiaandthePacific

3

WhiletheRCEPisnotaswide-rangingastheCPTPP—forexample,itdoesnotincludeprovisionsonlaborandenvironmentalstandardsorstate-ownedenterprises—itisreasonablycomprehensive,coveringtradeingoodsandservices;cumulativeandtrade-friendlyrulesoforigin;customsproceduresandtradefacilitation;sanitaryandphytosanitarymeasures;standards,technicalregulations,andconformityassessmentprocedures;andtraderemedies.Themembershipsoftheagreementsoverlap:7of11CPTPPmembersalsosignedtheRCEP.

Table1comparesthemainfeaturesoftheRCEPandtheCPTPP,recognizingthatacarefulmappingofthelegaltextwouldrequirelongerandmoretechnicalanalysis.TheRCEPislong—atover6,000pages—becauseitincludesdetailedschedulesthatrecordhowindividualmembersexercisedtheflexibilitiesofferedbytheagreement.Inpart,theseflexibilitiesaddresstheneedsoftheregion’sleastdevelopedcountries,CambodiaandtheLaoPeople’sDemocraticRepublic.Buttheyarenotlimitedtothesecountries—positivelistsareusedforservicesliberalizationinfiveotherRCEPeconomies,includingthePRCandNewZealand.

Table1:ProvisionsoftheComprehensiveandProgressiveAgreementonTrans-PacificPartnershipandtheRegionalComprehensiveEconomicPartnershipAgreement

CPTPP

MajorIssues

Chapter

RCEPChapter

CPTPPContent

ExpectedRCEPDifferences

Nationaltreatment

2

2

Applicationofnationaland

Same.

andmarketaccess

mostfavorednationtreatment,

fortradeingoods

transparenttariffs.

Rulesoforigin

3,4

3(Annexes3aon

productspecific

rules,and3boninfo

requirements)

Favorabledefinitionsandcostingmethodsforcumulation.Deminimistreatmentofnon-originatingmaterials.Specialprovisionsfortextilesandapparel.

Regionalvalue-addedrequirementgenerallyaliberal40%.

Customs

5

4(Annex4aon

Enhancedcustoms

Samegoalsandfocuson

administrationand

timingof

cooperation,tradefacilitation,

consistency,transparency,

tradefacilitation

implementation)

expressshipments,

efficiency.

administrationofcustoms

penalties.

Traderemedies

6

7(Annex7aon

Rulesforsafeguards,temporary

Samecoverage.

antidumpingand

protection,antidumpingand

countervailing

countervailingduties.

duties)

Sanitaryand

7

5

Rulesforsanitaryand

phytosanitary

phytosanitarymeasures,

measures

equivalencerecognition,

scienceandriskanalysis,audits,

certification,andtransparency.

Sameingeneral,WorldTradeOrganization(WTO+),alsoincludescapacitybuilding.

Technicalbarriers

8

6

Enhancedcooperationon

Standards,technicalregulations,

totrade

standardsfortechnical

andconformityassessment

regulations,conformity

procedures.

assessment.

continuedonnextpage

ADBEconomicsWorkingPaperSeriesNo.639

Table1continued

CPTPP

MajorIssues

Chapter

RCEPChapter

CPTPPContent

ExpectedRCEPDifferences

Investment

9

10(Annex10A

Nationaltreatment,most

Similarstructurebutpermits

customary

favorednationtreatment,

positivelistsforexceptions.

internationallaw;

compensationfor

Investor-statedispute

Annex10B

expropriation,rulesforfinancial

settlementnotyetincludedbut

expropriation)

transfers,barperformance

partofworkprogram,with

requirements,investor-state

discussionstobegintwoyears

disputesettlementwith

afterentryintoforce.

improvedsafeguardsforpublic

welfareregulations.Phasingout

equitylimitsinsomecountries.

Cross-bordertrade

10,11,13

8(AnnexAfinancial

Disciplinesonmarketrestrictions,

inservices

services;AnnexB

localpresencerequirements,

telecommunications

regulations,criteriaforservice

services;AnnexC

providers.Specialprovisionsfor

Professional

financialservicesforofferingnew

services)

productsandrestricting

regulations,foreducational

servicesinenhancingofferings,

andfortelecommunications

servicesoninterconnection,

roaming.

Includesnegativelistsforsevencountriesandpositivelistsforeight;nationaltreatment;specialanddifferentialtreatmentforleastdevelopedcountries;listsofferedbymembersareextensive(over1,000pages,BakerMcKenzie2020).Allshouldtransitiontonegative-listapproachwithin6yearsofentryintoforce.

Temporaryentry

12

9

Disciplinesonregulating

forbusiness

temporaryentryofbusiness

persons

persons.Country-specific

concessionsforadditional

professionalservicesandlonger

periodsofstay.

Takesessentiallysameapproach,focusontransparency,cooperationtofurtherfacilitatemovement.

Electronic

14

12

Prohibitscustomsdutieson

commerce

electronictransmissions,

discriminatorytreatmentof

digitalproducts.Setslegal

frameworkfore-commerce.

Limitsrestrictionson

cross-bordertransmission

ofdataandlocationof

computingfacilities.

Tradefacilitation,nocustomsdutiesonelectronictransfers;noimpedimentstocross-borderdataflowsandnodatalocalizationrequirements,excepttopromotepublicobjectives,nationalsecurity.

Government

15

16

Nationaltreatmentand

procurement

nondiscrimination,governance

ofprocurement,expanded

rangeoforganizationscovered.

Focusesontransparencyandcooperation,noobligationsforleastdevelopedcountries,noapplicationofdisputesettlement.

Competitionand

16,25,2613(Annexeson

Ensuresfairnessincompetition

Measuresagainst

regulatorypolicy

measuresagainst

law,enablesprivaterightof

anticompetitivebehavior;

anticompetitive

action.Enhancedregulatory

technicalcooperationand

activitiesbycountry

coherence,transparency,

capacitybuilding;consumer

groups)

anticorruptionmeasures.

protection.

State-owned

17

Notapplicable

Definesstate-owned

Notcovered.

enterprisesand

enterprisesanddesignated

designated

monopoliesandlimits

monopolies

noncommercialassistanceto

state-ownedenterprises.

continuedonnextpage

EconomicImplicationsoftheRegionalComprehensiveEconomicPartnershipforAsiaandthePacific

5

Table1continued

CPTPP

MajorIssues

Chapter

RCEPChapter

CPTPPContent

ExpectedRCEPDifferences

Intellectual

18

11(11AParty-specific

Commitmentstoratify

Samecommitmentson

property

transitionperiods;

internationalagreementson

internationalagreements,

11Blistoftechnical

intellectualproperty.

improvesenforcement,WTO+

assistancerequests)

US-promotedprovisionsfor

butmorelimitedcoverage.

expandedintellectualproperty

protectionsunderTrans-Pacific

Partnershiparesuspended.

Labor

19

Notapplicable.

Commitmentstoimplementlaws

Notcovered.

andregulationssupporting

InternationalLabour

OrganizationDeclaration

onLaborRights.Institutions

forreviewandaLaborCouncil

formonitoring.

Environment

20

.Notapplicable

Recognitionofmultilateral

Notcovered.

environmentalagreements.

Provisionsonshippollution,

biodiversity,invasivespecies,

marinefisheries,conservation.

Cooperationand

21,22,23,

14(smalland

Institutionsforcooperationand

Samegeneralcoverage,

capacitybuilding

24

medium-sized

capacitybuilding,including

resourcesappliedarevoluntary,

enterprises),

especiallysmalland

specialconsiderationsfor

15(economic

medium-sizedenterprises.

ASEANleastdeveloped

andtechnical

countries.

cooperation)

Disputeresolution

28

19

Scopeofdisputesettlement

andapanelforunresolved

disputes.

Processforadjudicatingdisputes,createsdisputepanelwhosedecisionsarefinalandbinding,specialanddifferentialtreatmentforleastdevelopedcountries.

Definitions,

1,27,29,30

1,17,18,20

EstablishtheTrans-Pacific

administration,and

PartnershipCommission,

institutions

securityrelatedexceptions,

safeguardmeasures,taxation.

Conditionsforchanges

includingenlargement.

EntryintoforceafterratifiedbysixASEANcountriesandthreeothers;enlargementpossibleafter18monthsfromentryintoforce,withexceptionofIndia,whichcanreturnatwill.

CPTPP=ComprehensiveandProgressiveAgreementforTrans-PacificPartnership,RCEP=RegionalComprehensiveEconomicPartnership.

Source:Authors’compilation.

Onthewhole,liberalizationlevelsanddisciplinesincludedintheRCEParelessrigorousthanintheCPTPP.WhiletheCPTPPwilleliminatetariffson96%ofproductsthatenterintraregionaltrade,theRCEPisestimatedtocoverapproximately90%ofgoodsand,evenforthese,tariffswillnotbefullyeliminatedinthetransitionperiod.Yetitsbroadcoveragebodeswellfordeepeningitsprovisionsinthefuture,asistypicalofASEAN-centricagreements.Forinstance,theASEANFreeTradeAreabeganin1992asanarrangementthatonlyincluded10manufacturingsectorsanddefinedfreetradeastariffsbetween0%–5%.4Subsequently,itexpandedtoincludeallgoods,witharelativelysmallexclusionlist,

AgreementontheCommonEffectivePreferentialTarifffortheASEANFree-TradeArea,Singapore,28January1992./?static_post=agreement-on-the-common-effective-preferential-tariff-cept-scheme-for-the-asean-free-trade-area-singapore-28-january-1992

ADBEconomicsWorkingPaperSeriesNo.639

andreducedtariffstozero.Inthemeantime,theregionlaunchedtheASEANEconomicCommunityinitiativein2003withtheambitiousgoalofcreatingaregioninwhichgoods,services,skilledlabor,andforeigndirectinvestmentwouldflowfreely.5TheASEANEconomicCommunityofficiallywentintoeffecton31December2015,eventhougharguablymuchremainstobedoneincompletingitssinglemarketandproductionbase.

Infact,theRCEPhasanextensivestructureofscheduledmeetingsandabuilt-inworkplantofacilitateimprovements.Forexample,itdoesnotincludeaninvestor-statedisputesettlementmechanismbutstipulatesthatdiscussionsbeginonsettingoneuptwoyearsaftertheentryintoforceoftheagreement.Theserviceschapterallowsforbothpositive-andnegative-listapproachestoincreasingmarketaccess,butallcountriesarecommittedtoadoptanegative-listapproachwithin6years.Moreover,enlargementapplicationscanbesubmitted18monthsafterentryintoforceoftheagreement,exceptforIndia,whichcanapplyatanytime.

TheRCEPwillfallshortoftheCPTPPinareasofspecialconcerntoadvancedeconomies.ItsintellectualpropertyprovisionsaddlittletothosethatmostmembershavealreadyacceptedintheWTOorotheragreements.Asnoted,theRCEPdoesnothavechaptersonlabor,theenvironment,orstate-ownedenterprises.Itdoesincludeachapteronelectroniccommerceanditsprovisionsstipulatethatpartieswillnotapplydutiesonelectronictransmissions,butthetreatmentofelectroniccommercedoesnotappeartogobeyondcommitmentsundertheWTO(Article12.11).Impedimentstocross-borderdatatransfersanddatalocalizationrequirementsareprohibited,butbotharesubjecttoexceptionsthatcouldbewidelyused;partiesmayapplyrestrictionsinthecaseof“l(fā)egitimatepublicpolicyobjectives”ornecessarytotheprotectionofsecurityinterests(Article12.14andArticle12.15).Asnoted,provisionsoninvestor-statedisputesettlementarenotincludedbutwillbenegotiatednolaterthan2yearsafterentryintoforceoftheagreement(Article10.18).

Nevertheless,theRCEPwillbetheworld’slargestregionaltradeagreementwithmeaningfulcoverageandeffects.Significantly,itwilloffercumulative,favorablerulesoforigin(ROOs)formanufacturersparticipatinginregionalsupplychains.ItwillimprovenotablyonASEAN+1agreementsbyprovidingconsolidatedrulesthatbenefitexportersandforeigndirectinvestors.Itsmarketaccessprovisionswillsetcommontermsofreferenceforregulatorypoliciesandextendnationalandmostfavorednationtreatmenttonewsectors.Itschapteroncustomsproceduresandtradefacilitationwillenhanceharmonization,regionalcooperation,andtransparency.Andtheagreementsetsthestageforcomprehensiveconsultationsandprovidesanopenenlargementpolicy.

MODELINGTHEEFFECTSOFTHEREGIONALCOMP