The opening case explores the Regional Comprehensive Economic Partnership (RCEP) between the Association for South East Asian Nations (ASEAN) and Australia, New Zealand, China, Japan, and South Korea, which if ratified, will include about one-third of the global population and GDP. The agreement will reduce tariffs on goods between member states and allow companies to sell the same product across the trading bloc without having to meet individual nation requirements. While negotiations for the trading bloc started a number of years ago, efforts to come to an agreement took on a new urgency when Donald Trump pulled the United States out of the Trans-Pacific Partnership (TPP) and fear grew that protectionism was on the rise. Some have suggested that the RCEP is a China-led agreement, however, the ASEAN nations argue that while China is a large voice in the agreement, it is not the leader of the agreement.

Discussion Questions

1. Discuss the proposed Regional Comprehensive Economic Partnership (RCEP) and what it means to companies inside the proposed bloc and for companies that export to potential member countries. How might companies benefit from the agreement?

2. Will the Regional Comprehensive Economic Partnership (RCEP) change the balance of power in global trade? Is the agreement a "win" for China or is China just another member nation?

3. The Regional Comprehensive Economic Partnership (RCEP) has been criticized for not including agreements on the environment, labor regulations, and provisions on state-owned enterprises. Should RCEP members have made a bigger effort to negotiate these areas? Is their omission a sign of failure?