Asia's RCEP Expansion Leads Regional Integration Wave
In a significant development for global trade, countries are actively forming new regional economic agreements in 2025, with the Regional Comprehensive Economic Partnership (RCEP) at the forefront of this trend. As the world's largest free trade agreement, RCEP is seeing expansion efforts as Hong Kong, Sri Lanka, Chile, and Bangladesh seek membership, according to a Reuters report. This move could reshape trade dynamics, with RCEP already covering about 30% of global GDP and population since its 2022 implementation.
RCEP's Growing Influence
The RCEP, which includes 15 Asia-Pacific economies like China, Japan, and ASEAN members, is set to hold its first summit to discuss deeper alignment and new members. Malaysian Trade Minister Tengku Zafrul Aziz emphasized, 'The summit aims to take stock and demonstrate that Asia can lead openness amid global protectionism.' Data from the World Economic Forum shows that RCEP has boosted intra-ASEAN trade by over 7% in 2024, with potential to lift 27 million people to middle-class status by 2035. By eliminating 90% of tariffs within 20 years, it offers a model for economic integration that balances diversity and cooperation.
Africa's AfCFTA Advances Amid Challenges
Parallel to Asian efforts, the African Continental Free Trade Area (AfCFTA) is making strides despite hurdles. Launched in 2021, AfCFTA celebrated its fifth anniversary in 2024, triggering a review for amendments. A UN report highlights its role in addressing energy access and food security, while an analysis on Bilaterals.org notes challenges like slow tariff liberalization and infrastructure deficits. Experts argue that effective implementation could transform Africa's economy by boosting intra-regional trade, which currently lags at around 15% of total trade.
North America's USMCA Under Review
In North America, the US-Mexico-Canada Agreement (USMCA) is preparing for a joint review in 2026, with public consultations underway in 2025. The U.S. Trade Representative is gathering input on compliance and economic security, amid concerns from the Center for Strategic and International Studies that the review could become high-stakes due to geopolitical tensions. Since implementation, intra-regional trade has grown 37%, underscoring its importance for a market representing 30% of global GDP.
Implications for Global Trade
These regional deals reflect a shift towards multilateralism in response to protectionist trends. As economies navigate post-pandemic recovery, agreements like RCEP, AfCFTA, and USMCA offer pathways to resilience. However, challenges such as political diversity and infrastructure gaps remain. The ongoing expansions and reviews signal a dynamic era for trade, with potential to redefine global economic alliances in the coming years.