ABSTRACT
This chapter provides an overview of the economic background of the 16 countries participating in the RCEP negotiations as well as globally significant political and economic entities – the European Union (EU) and the United States – to understand their economic incentives regarding the RCEP. Like the countries participating in the RCEP negotiations, the EU and the United States are Dialogue Partners of the Association of Southeast Asian Nations (ASEAN). A free trade agreement (FTA) such as the RCEP is negotiated or concluded on the basis of not only the economic interests of the participating countries but also non-economic interests such as political motivations. However, the literature reveals the importance of economic gains in joining an FTA. In addition, FTA discussions and negotiations necessarily include the economic effects of such agreements.
