ECONOMICS
In your opinion , how quickly will the RCEP member countries be able to achieve the goals set for the union : reducing tariffs , facilitating the transportation of goods , reducing barriers to trade in services ? What steps are already being taken to address these challenges ? And what effect will it have on the economy of member countries and the world economy in general ?
In these difficult pandemic-filled times it is hard to predict the speed of implementation as governments will have many priorities . Nevertheless , we saw last month that China is stepping up efforts to implement RCEP within the next six months . Managing expectations will be key to moving forward . The effects on the global economy remain unknown , but if barriers to trade are lowered , it will likely drive at least some new efficiency gains .
How do you think trade relations between the EU and China will develop , and what measures are to be taken to produce a productive dialogue ?
Trade relations remain strong , but unbalanced . For every euro worth of exports from the EU to China , two euro worth of Chinese imports enter Europe . In general , that deficit is not an issue – Europeans are not losing anything , they are getting products in exchange for outward capital flows – but in some areas , this imbalance is driven by structural issues like China ’ s intense subsidies for various goods , as well as market access barriers for certain products . China doesn ’ t have to wait for a trade agreement with the EU to address these issues , as they are well within the unilateral control of local policymakers .
Investment relations are set to improve somewhat , but far more needs to be done . Thirty per cent of global growth in the next ten years will come from China . European businesses want to be a part of this and the conclusion of the CAI negotiations are a welcome step in achieving greater access to the China market , and a more level playing field within . Again , most of these issues could be solved unilaterally by China ’ s leaders , but it may require the EU to push even harder to go beyond the small , but positive , step that the CAI represents .
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