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In an era marked by multifaceted global challenges—including environmental degradation, resource constraints, technological transformation, economic uncertainty, and intensified geopolitical tensions—the international economic and political system is undergoing a significant period of transition. This transformation reflects the emergence of a new global order, while the existing order is increasingly being challenged. The erosion of multilateralism, particularly within the framework of international institutions such as the World Trade Organization, whose role has been weakened by the growing use of tariff measures, trade protectionism, and inward-looking economic policies, has reduced states’ ability to rely on major powers or the mechanisms of the traditional global order.
Nevertheless, international economic cooperation remains essential, as no country can sustain itself in isolation within a highly interconnected globalized economy, where the exchange of resources constitutes a critical factor. In this context, regional cooperation assumes heightened importance and can serve as a key mechanism for mitigating impacts and managing risks arising from the uncertainties of the contemporary global economic and political landscape.
The World Economic Forum (WEF) 2026 report highlights a key policy recommendation: amid rapid change and increasingly complex challenges, both the public and private sectors must prioritize the enhancement of resilience—the capacity to anticipate, adapt to, and recover from uncertainties. This approach goes beyond mere risk mitigation, emphasizing the ability to transform uncertainty into a strategic advantage.
The Regional Comprehensive Economic Partnership (RCEP) is not only the largest trade agreement in the world but also embodies the concept of resilience in addressing contemporary challenges. Although negotiations took over eight years and the agreement only came into force in 2021, RCEP’s potential remains highly relevant, particularly within the current global context.
Examining the structure of the agreement, which comprises 20 chapters, RCEP exhibits distinctive characteristics that set it apart from other regional trade agreements. These are reflected in its high degree of flexibility and its consideration of the diverse levels of development among member countries. One of RCEP’s primary objectives is to address the “Noodle Bowl Effect” in ASEAN, which arises from the complexity and overlap of rules in multiple free trade agreements within the region—particularly regarding rules of origin and inconsistent trade benefits.
Studies by Xiao Yifei and Avery Goldstein indicate that the Regional Comprehensive Economic Partnership (RCEP) places significant emphasis on the development dimension, distinguishing it markedly from the Trans-Pacific Partnership (TPP), which maintains higher standards, more stringent obligations, and covers structural issues that extend beyond trade liberalization alone. In many cases, developing countries or smaller economies face limitations in participating in such agreements, as well as challenges in adapting to measures that go beyond trade-related issues, which can prevent smaller countries from fully accessing the associated opportunities. Consequently, RCEP clearly reflects the principle of ASEAN Centrality.
At the same time, RCEP includes provisions that promote small and medium-sized enterprises (SMEs) as well as emerging digital and e-commerce markets, representing a significant opportunity for businesses in ASEAN to leverage the agreement to expand their access to regional markets. This is particularly relevant with respect to China, which possesses substantial capabilities in the digital economy.
Moreover, studies by Dong Wang, Peiyung Xu, Bowen An, and Yingying Song indicate that ASEAN member countries will be indirectly affected by the development of the digital economy, particularly in terms of infrastructure. China, with its advantages and expertise in this domain, should play a continuous role in promoting digital economic development across the region. These dynamics highlight a key opportunity for ASEAN arising from the RCEP agreement.
In a world where geopolitical challenges are intensifying, the capacity of each country to adapt is of paramount importance. Nevertheless, international cooperation, particularly at the regional economic level, remains a critical mechanism for strengthening collective capabilities and efficiently leveraging regional resources. Such cooperation can help mitigate external shocks, especially those arising from trade conflicts and the transformation of the global order.
Within this context, RCEP serves as a strategically significant mechanism and exemplifies the characteristics of an inclusive trade agreement, providing opportunities for member countries at varying levels of development to participate equitably. It also underscores the role of resilience as a key factor in designing and implementing regional trade agreements that can operate with stability and achieve success amid an uncertain global environment.
Author:
Woraphat Ditpan
Researcher
International Institute for Trade and Development (ITD)
www.itd.or.th
Publication: Bangkok BIZ Newspaper
Section: First Section/World Beat
Volume: 39 Issue: 13086
Date: Wednesday, Jan. 28, 2026
Page: 8 (bottom)
Column: “Asean Insight”
