RCEP versus TPP with the Trump Administration in the USA and Implications for East Asian Economic Cooperation

Abstract

Objective: The objective of this article is to evaluate the two mega FTAs, namely RCEP and TPP in the Asia Pacific region in general and the new trends and directions of these mega FTAs with Trump Administration in the USA in particular. Moreover, it estimates implications for East Asian Economic cooperation. The article deals with possible impacts on the US withdrawal from TPP and post TPP visions. Furthermore, it also analyses what implications can be provided for East Asian economic cooperation. Research Design & Methods: In order to meet the research targets, various methods are used, such as the method of critical analysis of literature, the inference method, and the method of statistical analysis, which include quantitative and qualitative analyses. Findings: While investigating regional economic integration between RCEP and TPP with the member states, it is visible that the majority of the member states in the two mega FTAs are more dependent on RCEP than on TPP. It means that RCEP can generate more economic benefits to the member states in the region than TPP in the long run. Implications & Recommendations: It implicates that RCEP can play important roles in shaping new trade governance in the Asia Pacific region which could establish Asia Pacific Free Trade Agreement (APFTA). Contribution & Value Added: The originality of this work lies in exploring the two mega FTAs in the Asia Pacific region, how they have competed with each other and implemented their national trade strategies.