The potential benefits for Japan from the proposed RCEP trade deal in Asia are similar in scale to those that might have been achieved under the TPP. But they are not substitutes for each other: gains under RCEP would come from reductions in tariffs, whereas the TPP focuses more on lowering non-tariff barriers and boosting investment from abroad. As such, the demise of the TPP will still do lasting harm to Japan’s long-term prospects even if the RCEP comes into force.
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