China's accession to the world's largest free trade zone RCEP, more than 90% of goods or zero tariffs, affecting one-third of the world's population

China's accession to the world's largest free trade zone RCEP, more than 90% of goods or zero tariffs, affecting one-third of the world's population

The Regional Comprehensive Economic Partnership (RCEP) is made up of 10 Southeast Asian countries, as well as South Korea, China, Japan, Australia and New Zealand.

Members of the RCEP make up nearly a third of the world's population and account for 29% of global gross domestic product.

The new free trade bloc will be bigger than both the US-Mexico-Canada Agreement and the European Union.

Why do members want this deal?

The RCEP is expected to eliminate a range of tariffs on imports within 20 years.

It also includes provisions on intellectual property, telecommunications, financial services, e-commerce and professional services.

"The existing FTAs can be very complicated to use compared to RCEP," said Deborah Elms from the Asian Trade Centre.

Businesses with global supply chains might face tariffs even within an FTA because their products contain components that are made elsewhere.

A product made in Indonesia that contains Australian parts, for example, might face tariffs elsewhere in the Asean free trade zone.

Under RCEP, parts from any member nation would be treated equally, which might give companies in RCEP countries an incentive to look within the trade region for suppliers.

Who is likely to benefit?

The Peterson Institute for International Economics estimates the deal could increase global national income by $186bn annually by 2030 and add 0.2% to the economy of its member states.