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Regional Comprehensive Economic Partnership (RCEP): Impact on the Integration of Textile and Apparel Supply Chain in the Asia-Pacific Region

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Fashion Supply Chain Management in Asia: Concepts, Models, and Cases

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Abstract

The Regional Comprehensive Economic Partnership (RCEP) is an ambitious free trade agreement (FTA) currently under negotiation between ten member states of the Association of Southeast Asian Nations and other six large economies in the Asia-Pacific region . This study intends to quantitatively evaluate how the implementation of the RCEP will affect the integration of T&A supply chain in the Asia-Pacific region . By adopting the GTAP computable general equilibrium model based on the GTAP9 database, the study finds that: first, the trade creation effect of the RCEP will significantly encourage its members to source more textile and apparel from within the RCEP area and form an ever more integrated regional T&A supply chain . Second, the trade diversion effect of the RCEP will affect textile exports from non-RCEP members, particularly the USA and the EU, to RCEP members negatively. Third, apparel exports from RCEP members would benefit from a more integrated regional T&A supply chain facilitated by the RCEP and demonstrate more competitiveness in the world’s leading apparel import markets. Findings of this study augment our understanding of the T&A-specific sectoral impact of the RCEP and provide valuable inputs that could support the T&A sectoral negotiation under the RCEP and related policy making in response to the implementation of the agreement.

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Author information

Authors and Affiliations

  1. Department of Fashion and Apparel Studies, University of Delaware, Delaware, USA

    Sheng Lu

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  1. Sheng Lu
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Correspondence to Sheng Lu .

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Editors and Affiliations

  1. Donghua University, Shanghai, China

    Bin Shen

  2. Donghua University, Shanghai, China

    Qingliang Gu

  3. Donghua University, Shanghai, China

    Yixiong Yang

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Lu, S. (2019). Regional Comprehensive Economic Partnership (RCEP): Impact on the Integration of Textile and Apparel Supply Chain in the Asia-Pacific Region. In: Shen, B., Gu, Q., Yang, Y. (eds) Fashion Supply Chain Management in Asia: Concepts, Models, and Cases . Springer Series in Fashion Business. Springer, Singapore. https://doi.org/10.1007/978-981-13-2294-5_2

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