Impact of the regional comprehensive economic partnership agreement on the German economy

Marc Atkins (), Christian Peitz () and Bernard Gilroy

International Journal of Asian Social Science, 2023, vol. 13, issue 7, 204-224

Abstract: The Regional Comprehensive Economic Partnership (RCEP) creates the largest free trade zone worldwide and changes the world economy. The RCEP region is one of Germany’s most important trading partners and supplier of key inputs with a trade volume of USD 218 billion in imports and USD 188 billion in exports in 2020. But how does RCEP impact Germany and which sectors are most affected? How should Germany best react economically and politically in order to benefit most from the agreement and its consequences instead of losing trade volume and global market share? To answer these questions, we analyse trade between Germany and the RCEP members in terms of imports, exports, trade in value-added as well as forward and backward linkages, before conducting a sector-level trade analysis. Our analysis incorporates the details of the RCEP provisions and compares the agreement to the CPTPP. We find that a more China-centric political agenda is necessary for Germany and that it ought to incentivise RCEP investment, especially in the computer, electronic and optical products sector as well as the motor vehicles, trailers and semi-trailers sector. This will preserve existing exports and market shares, further develop RCEP as a market for German exports as well as investment in order to benefit from positive local effects of RCEP.

Keywords: ASEAN; CPTPP; FTA; Globalization; International trade; RCEP; Trade policy. (search for similar items in EconPapers)
Date: 2023
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