The Regional Comprehensive Economic Partnership (RCEP) is a core pillar of Asia’s institutional architecture and a stabilising force amid rising geopolitical uncertainty, but its gains remain modest and uneven. It continues to reinforce existing linkages more than it creates new ones.
This was the central message of the February 2026 research conference convened by the Asia Competitiveness Institute (ACI) and the RCEP Support Unit ahead of the 2027 General Review.
The Review should not be a routine stocktake. It must deliver targeted, high-impact reforms that make RCEP more practical and widely used by firms.
RCEP is generating clear gains in pivotal areas. Services trade, including digitally deliverable services such as consulting, software, and telecommunications, is expanding rapidly. This has been enabled by commitments that go beyond earlier ASEAN+1 FTAs. Investment trends reinforce this momentum, with greenfield FDI rising by 42%. In trade, intra-RCEP trade is robust and substantial, especially between Northeast Asia and ASEAN.
RCEP still faces practical constraints that limit its impact. Utilisation remains low, reflecting persistent friction for firms. Tariff liberalisation is broad but uneven, and less comprehensive than ATIGA and other ASEAN+1 FTAs. Non-tariff measures continue to raise compliance costs. Technology collaboration, though improving, falls behind existing bilateral agreements in depth. Environmental provisions also remain underdeveloped, limiting progress in green trade.
Targeted, near-term reforms can deliver immediate gains. Accelerating tariff reductions and concluding full cumulation of Rules of Origin, which allows firms to combine inputs from multiple RPCs and still qualify for tariff preferences, will directly improve uptake. Establishing a robust utilisation monitoring mechanism, supported by customs data, will help members track actual use of the agreement, identify border bottlenecks, and develop more targeted reforms.
Sustaining these reforms requires stronger institutions. Upgrading the RCEP Support Unit into a full Secretariat would strengthen implementation and provide a more effective institutional backbone for coordination and delivery. Under this structure, ECOTECH initiatives – programs for economic and technical cooperation – can be expanded to build capacity and support commitments. A dedicated data-sharing platform would enhance transparency, monitoring, and policy alignment.
Reform must also extend beyond tariffs. Strengthening supply chain resilience through interoperable customs systems and faster cross-border processing of trade documents will be critical. Regulatory cooperation should focus on reducing behind-the-border non-tariff barriers. RCEP must evolve with modern trade by expanding its digital economy scope and strengthening environmental cooperation.
RCEP is delivering, but below its full potential. Trade creation remains modest, utilisation is low, and operational and institutional gaps persist. The 2027 General Review is a strategic opportunity to prioritise high-impact reforms. The conference recommends an early-harvest, phased approach rather than prolonged negotiations on every outstanding issue. In a fragmented global economy, RCEP anchors regional stability. Its long-term credibility will depend on whether members translate a broad framework into one that firms actively use, and whether it keeps pace with the salient issues of our times.
ACI Perspectives 