SRI LANKA'S JOINING THE RCEP - OPPORTUNITIES AND CHALLENGES

Media reports say that Sri Lanka is set to join the Regional Comprehensive Economic Partnership (RCEP), the world’s largest trading bloc, accounting for 30% of global GDP.

- By P.K. Balachandran

The 15-member RCEP includes the ASEAN countries plus Australia, New Zealand, China, Japan and South Korea. Sri Lanka had sent its letter of intent to join the RCEP in 2023.

At a roundtable discussion on “Sri Lanka’s Pathway to RCEP and the Emerging Global Trading Order” organised by the Pathfinder Foundation in Colombo, Sri Lanka’s Trade Ministry Secretary K.A. Vimalenthirajah said that the government had submitted responses to the preliminary questionnaire from the RCEP in January, and that the Cabinet had established a high-level policy committee and a working committee to take the matter forward.

Welcoming Sri Lanka’s move, the Indonesian Ambassador to Sri Lanka, Dewi Gustina Tobing, cited Sri Lanka’s strategic location in the Indian Ocean, strong maritime connectivity potential, competitiveness in many products and potential as a regional logistics and service hub as good reasons for joining the RCEP. “Diversification of export market and investment opportunity is, of course, an important benefit that Sri Lanka will get by joining this organisation. Sri Lanka will be able to improve itself and its prospects as a destination of investment,” Tobing said.

Australian Ambassador Matthew Duckworth said that joining RCEP will enable Sri Lanka to undertake overdue reforms as the circumstances arising from its membership will push the island nation towards reform.

What RCEP Was Meant to Achieve

Tracing the history of RCEP, in the “The Diplomat”, Jesslene Lee said that the RCEP was thought of in 2019, at a time when the Asia-Pacific region found itself in the crosshairs of intensifying geoeconomic competition and strategic rivalry. There was a felt need for “plurilateral agreements” to provide safeguards and strategic opportunities to weather the volatility in the global economy.