The Regional Comprehensive Economic Partnership (RCEP) could help revive the garment and textile sector in Southeast Asia. The 16-member bloc includes the 10 Asean member countries (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam) plus six other countries – Australia, New Zealand, China, India, Japan and South Korea.

The garment and textile industry in less-developed economies in the RCEP, such as Myanmar, Cambodia and Laos, are best placed to gain from the deal. These countries rely on low-cost manufacturing and could gain access to wealthy consumers in Australia, New Zealand and China. Another benefit is these emerging markets will gain a strengthened economic relationship with China. They could attract increased flows of foreign direct investment from capital-rich investors eager for new, untapped opportunities abroad.

Myanmar could benefit the most as it does not compete with low-cost, bulk order countries such as Bangladesh, India and Cambodia, and tends to specialise in higher-quality, more technical garments. On top of that, the country has an abundant supply of low-cost labor.

But like any other free trade deal, under the RCEP, the agreement would work only for trades between signatory states when the rules of origin are met. Hence it would not be possible for Cambodia or other Asean member states to gain benefits under RCEP for shipment into the US or EU – key export markets.