RCEP trade deal could boost Japan's GDP by 15 tril. yen

©Kyodo News

Japan's gov一覧ernment said Friday the domestic economy could be boosted by 15 trillion yen ($140 billion) as the result of 15 Asia-Pacific nations signing the world's largest free trade deal last year.

Calculated in terms of the country's real gross domestic product in fiscal 2019, the expected economic effect from the Regional Comprehensive Economic Partnership, involving Japan, China and South Korea, corresponds to about a 2.7 percent GDP increase, according to relevant Japanese ministries.

In its first publicized estimate on the impact of the multilateral trade pact covering about a third of global trade and population, the government predicted around 570,000 jobs to be created.

Signed last November, the deal will eliminate tariffs on 91 percent of goods and set common rules on investment, intellectual property and e-commerce. It is expected to reinvigorate supply chains in the region and make them more effective for businesses.

For Japan, it marks the first trade deal it will have with both China and South Korea. China is Japan's largest trading partner in terms of the total sum of imports and exports, and South Korea is its third-biggest.

Besides the three East Asian countries, the RCEP consists of Australia, New Zealand and the 10 members of the Association of Southeast Asian Nations. ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

The pact will come into effect once it is ratified by any six of the ASEAN members and three of the other countries.