Hanoi, Oct 5 (Prensa Latina) The largest free trade agreement on Earth will comprise 16 nations, half the world's population and almost one third of the global Gross Domestic Product when it is finally enacted.
On the one side, the Regional Integral Economic Zone will include the 10 member states of the Association of Southeast Asian Nations (ASEAN): Brunei, Camboya, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapur, Thailand and Vietnam.

On the other side -or more appropriately on the same side- will be China, South Korea, Australia, India, Japan and New Zealand.

The list is impressive, as there are several of the most important economies on Earth and a market with over 3.5 billion consumers, half the world's population.

To negotiate with that mega-bloc, partners will have to stand firm, as its economic strength will give it a great bargaining power and solidity facing eventual attempts of pressure by any other power of other regional integration pacts.

HEAVYWEIGHTS OF THE COMPETITION

According to the most recent statistics of the World Bank, the economy of the United States keeps being the biggest in the planet with a value of 18 trillion dollars, almost one fourth of the world total (24.3 percent).

After the U.S., are two subscribers of the mega-bloc: China (11 trillion dollars, 14.8 percent of world economy) and Japan (4,4 trillion dollars, almost six percent of world GDP).

Three European nations occupy the next places: Germany (3.3 trillion dollars); the United Kingdom (2.9) and France (2.4).

Another member of the bloc, India, is seventh with two trillion dollars, while the list is completed with Italy in tenth place (1.8), Brazil (almost 1.8) and Canada (1.5)-

The U.S. economy is larger than those from the third to the 10th place put together, but according to projections of the projections of institutions studying the world economy, that will not hold for a long time, nor is China going to be second forever.

The Asian giant drives at a growth rate that sooner than later will allow it to reach the still first world power. In 2016, for example, Chinese GDP expanded 6.7 percent, while that of the U.S. only grew by 1.6 percent.

Another country with an impressive growth rhythm is the Indian elephant, with high rates over the last years and 6.6 percent rate in 2016.

Also in regional terms, the trends in the middle and long terms favor Asia, with an increasing partiipation in the world economy, already representing over one third (33.84 percent) of world GDP.

The joined economy of North America only represents 27.95 percent and that of Europe, 21.37 percent.

No few studies forecast that by 2030, Chinese economy will have surpassed that of the U.S. and careful with India, while that of Indonesia could go to fourth place.

In the new scenario shaped by the accelerated growth of emergent economies, the United Kingdom barely will maintain its place among the first 10 economies, while France and Italy would be left out of the list, stalked by Mexico, Turkey and Vietnam.

NEW AXIS OF WORLD ECONOMY

Designed and signed over five years ago, the Integral Regional Economic Association (IREA) has barely taken its first steps and if compared with a human being, it could be said that it already crawls and show its first baby teeth.

But it grows at a faster pace than a person does.

In Manila, the ministers of Economy of the interested nations gave on September 10 a big push to the project when they overcame some obstacles and defined others of greater complexity but possible solution because there is political and economic will.

In a statement resuming the meeting, the secretary of Commerce of Philippines, Ramon Lopez, indicated the officials had solved 'some key issues that retard negotiations' and looked for 'flexible options' to consolidate the initiative.

Lopez recognized, however, that if the purpose of ministers was to define key elements of the Association and reach 'important results' before the end of the year, the attempts would still take some time due to differences on the amount or elimination of tariffs and the opening of the services sector.

The IREA is designed to cover trade of goods and services, investment, economic and technical cooperation, intellectual property rights, competition policy and the solving of disputes, among others. Considered an excellent platyform so the region negotiates with other regional blocs, the megaproject will eliminate about 80 percent of the tariff barriers, that is, eight to nine thousand types of taxes.

The members of Asean have even thought to take that rate to 92 percent. Inside Asia, a catalystic element of the treaty will undoubtedly be the Chinese initiative of the Belt and the Route.

Last May, when the 3rd Ministerial Meeting of the IREA was held in Hanoi last May, the minister of Trade of China, Zhong Shan, underlined the association is committed to a modern, integral, high-quality and mutually benefitial FTA, in line with the Route of Silk.

Looking to obtain economic dividends above any other consideration, the IREA plans to assume certain licenses that will surely attract many critics, as the non-binding of members to comply wiuth regulations on the protection of work rights and the conservation of the environment.

But that is another story. For now it is the conformation of a mega-bloc that bursts into the world economic arena with impressive force.