DENPASAR (Bali) - Eleven of the 15 member countries of the Regional Comprehensive Economic Partnership (RCEP) have ratified the pact, slightly more than a year after it was signed in November 2020 following nearly a decade of negotiations.
Experts expect some delays for the final four members to do likewise, largely because of elections, the Covid-19 pandemic and lingering pockets of protectionism.
But the fate of RCEP, whose members account for 30 per cent of global gross domestic product (GDP), is secure.
It entered into force on New Year's Day this year with the backing of 10 of its 15 signatories - the Asean countries plus Australia, China, Japan, South Korea and New Zealand.
South Korea ratified the pact in December and will only formally be on board next month. Four Asean countries – Malaysia, Indonesia, Philippines and Myanmar - have yet to ratify the pact.
RCEP ends tariffs on more than 90 per cent of goods, offers preferential market access for specific products, including chemicals, plastics and processed foods, as well as streamlined customs procedures that will, among other things, guarantee that express items such as perishable food are released within six hours.
In the Philippines, where contenders for President Rodrigo Duterte's job face voters in May, RCEP risks being used as fodder to rally an electorate already weary of China's growing influence, experts say.
Ratification of RCEP comes as the Philippines mulls over changes to rules that would ban investment by state-owned companies, which many see as a restriction aimed at Chinese companies, Mr Lucio Pitlo III, research fellow at the Asia-Pacific Pathways to Progress Foundation, told The Straits Times.
"The coming election in the Philippines sets a challenging environment for RCEP," said Mr Pitlo.
"No one wants to be seen as lacking in terms of protecting local industries and rent seekers will use that to their advantage," he added.
In Indonesia, the government of President Joko Widodo is pushing ahead with roughly 40 high-priority Bills as he enters the penultimate year of his second and final term in office.
The agenda includes sweeping changes to the tax code to tap higher-income earners and businesses to boost government revenues as well as a watershed sexual assault crime Bill and renewable energy Bill aimed at helping the government meet its commitment to reduce carbon emissions.
Some members of Mr Widodo's massive coalition are wary of the RCEP, in part because they are worried that local small and medium-sized enterprises might struggle to compete with bigger rivals from Japan, Australia or China, according to local media.
"Free trade does not mean trading freely," Mr Aria Bima, deputy chairman of the parliamentary commission that oversees trade and a member of Mr Widodo's own party, was quoted as saying.
"There must be a way for us to determine various tactics (to protect local businesses) that will provide various layers of protection to strengthen national products," he said.