![]() ![]() However, increased international production fragmentation has raised concerns about the trade-climate dilemma (or pollution haven effect) of international trade 4, 5, 6, 7, 8, 9, 10. Tariff elimination in the region will reduce trade and production costs, resulting in considerable trade-creation and production-boosting effects. According to the Schedule of Tariff Commitments in the RCEP Agreement, most trade in goods will be duty-free immediately or within ten years after the agreement enters into force. After an 8-year-long negotiation, the ten countries of ASEAN (Association of Southeast Asian Nations), China, Japan, South Korea, Australia, and New Zealand finally concluded the Regional Comprehensive Economic Partnership (RCEP) in November 2020 and it became the largest RTA in the world in terms of both economic size and population. Regional trade agreements (RTAs) have been sweeping the world and have become ubiquitous in facilitating international trade and investment 1, 2, 3. We stress that technological advancement and more effective climate policies are urgently required to avoid undermining international efforts to reduce global emissions. In the longer run, the burdens can be lessened to some extent by the technological spillover effects of deeper trade liberalization. The emissions in some developing members will surge. However, the results show that complete tariff elimination among RCEP members would increase the yearly global CO 2 emissions from fuel combustion by about 3.1%, doubling the annual average growth rate of global CO 2 emissions in the last decade. We find that trade among RCEP member countries will increase significantly and economic output will expand with the reduction of regional tariffs. Here, we estimate the CO 2 emissions burdens of the Regional Comprehensive Economic Partnership (RCEP) after evaluating its economic effects. However, ex ante measurements of the environmental effects of RTAs to date have not been well conducted. Regional trade agreements (RTAs) have been widely adopted to facilitate international trade and cross-border investment and promote economic development. ![]()
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