Insights

RCEP trade deal boosts Australian exporter share prices

ASX exporter share prices have been given a boost after Australia signed up to the RCEP trade deal announced yesterday.
The post RCEP trade deal boosts Australian exporter share prices appeared first on Motley Fool Australia. –

hand reaching out of water for life buoy representing asx shares needed for Tesla to survive

Export-heavy shares have been given a boost today after Australia confirmed its participation in the world’s largest ever free trade agreement – the Regional Comprehensive Economic Partnership (RCEP).

In earlier trading, major Australian wine exporter Treasury Wine Estates Ltd (ASX: TWE) share price rose by 3% to $9.46.  Crop protection developer Nufarm Limited (ASX:NUF) is up 2% to $4.07, while copper exporter Sandfire Resources Ltd (ASX: SFR) also lifted 2% to $4.36.

What’s the big deal with RCEP?

RCEP has been billed as the world’s largest ever trade deal, covering more than 30% of global GDP, and 30% of the world’s population. It has been 9 years in the making, and its founding members announced over the weekend include China, Japan, South Korea, 10 members of the Association of Southeast Asian Nations (ASEAN), and of course, Australia.

By participating in this deal, the Australian Government hopes that it can diversify Australia’s export markets, and not become reliant one or two big trading partners. Trade Minister Simon Birmingham emphasised the importance of this diversification by saying that ASEAN nations have a big role to play in this trading bloc. He says:

ASEAN put together is Australia’s second largest trading partner. It includes some of the most dynamic economies in the region, such as Vietnam and Indonesia. Those 10 RCEP nations with enormous diversity are central to the strategic relationship that Australia has with our region.

We see the opportunity for huge economic growth and trade growth between Australia and the nations of ASEAN, but also for integration of supply chains that can give Australian businesses easier and better access and greater diversification over time amongst those countries.

Why is RCEP good for Australian export-driven companies

Analysts have commented RCEP could provide some sort of calm amid the trade tensions between China and Australia, as both countries are members of the new bloc. The trade deal could also reduce Australia’ economic reliance on China, especially since the latter has recently issued investigations into and potential bans on Australian products such as wine, copper, sugar, barley, and others. Exporters of these products will stand to benefit from this latest trade agreement. 

Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

Find out the names of our 3 Post COVID Stocks – For FREE!

*Returns as of 6/8/2020

More reading

Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post RCEP trade deal boosts Australian exporter share prices appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!