RCEP: The World’s largest trading bloc formed by Asia-Pacific Countries

The RCEP is expected to eliminate a range of tariffs on imports within 20 years.

It also includes provisions on intellectual property, telecommunications, financial services, e-commerce and professional services.

But it’s possible the new “rules of origin” – which officially define where a product comes from – will have the biggest impact.

Many member states that are part of RCEP already have free trade agreements (FTA) with each other, which comes with limitations.

The limitation can be a problem for businesses with global supply chains, as they might face tariffs even within an FTA because their products contain components that are made elsewhere.

For instance, a product made in Indonesia that contains Australian parts might face tariffs elsewhere in the Asean free trade zone.