We’re all looking at RCEP now. One really interesting angle is to compare the RCEP text to that of the CPTPP, its competitor. On the one hand, in many areas the text of RCEP is not only similar, but is in fact identical, to that of CPTPP. At the same time, there are significant differences between the two agreements, even in areas where they are comparable in scope and adopt similar approaches.
A good example is Article 7 on RCEP safeguards. Like CPTPP, RCEP contains a transitional safeguard mechanism, which allows temporary reversion to MFN rates where increased imports cause or threaten serious injury. At first glance, the texts bear remarkable similarities. Yet a closer review shows some major differences, which generally imply greater access to transitional safeguards under RCEP than under CPTPP. For instance:
Transition period: RCEP safeguards are available for 8 years after duty reduction/elimination for a product is completed. CPTPP safeguards cease upon tariff elimination.
Collective application: RCEP safeguards may be applied to imports from one Party or collectively. CPTPP safeguards may be applied collectively only where imports from each Party individually have increased.
Duration: RCEP safeguards can last 3 years plus a 1-year extension (2 for LDCs). CPTPP safeguards have a 2+1 duration.
Re-imposition: RCEP safeguards can be imposed a second time. CPTPP safeguards cannot.
Right of suspension: Under RCEP, the right of exporting Parties to suspend equivalent concessions cannot be exercised in the first 3 years of application. Under CPTPP, the right to suspend can be exercised immediately.
Provisional measures: RCEP provides for provisional safeguards. CPTPP does not.
One area where the two agreements are the same: Although in many respects modelled upon the WTO provisions, neither requires that the increased imports be the result of unforeseen developments.
