The RCEP is expected to include economic and technical cooperation elements that would allow all parties, regardless of their level of development, to maximize the opportunities made available by deeper and broader economic engagements.

"With the region accounting for more than half of the global market and about a third of the global economic output, there is no doubt that a successful RCEP would significantly contribute to and boost global trade and investment," said Surin Pitsuwan, Secretary General of ASEAN.

Barriers ahead

As all six dialogue partners in the region are supportive of ASEAN's leading role in promoting the RCEP and a string of existing bilateral trade deals in the region, Xu believes there is a good basis for the establishment of the regional trade bloc.

But despite its advantages, some observers claimed that reaching the deal won't be easy.

Zhang Jie, a researcher with the Institute of Asia-Pacific Studies at the Chinese Academy of Social Sciences, cautioned that some regional countries attempt to protect their sensitive sectors, such as Japan's agriculture sector and South Korea's rice industry. Moreover, regional security situations might become the largest factor affecting the expected establishment of the regional pact.

"Economic cooperation can be a good way to bridge differences, but the Philippines seemingly doesn't want to shelve island disputes in the South China Sea," said Zhang to Beijing Review.

When Cambodia, this year's ASEAN chair, said at the latest ASEAN Summit in November that ASEAN nations had agreed not to "internationalize" the rifts over the South China Sea islands, Philippine President Benigno Aquino III blatantly rebuked Cambodian Prime Minister Hun Sen.

Japan also seems to have intentionally stirred up trouble from the sidelines as Prime Minister Yoshihiko Noda claimed that the South China Sea issue is of international concern.

Countries including the Philippines and Japan have provoked the topic of territorial disputes during the meetings of East Asian leaders in Phnom Penh, casting a shadow over regional economic cooperation, said Dong Manyuan, Vice President of the China Institute of International Studies.

"The deeds of those countries did not proceed from the overall interests and cooperation of the regional members but instead schemed to put their personal interests above the overall benefits of the region. It will surely affect deeper cooperation between the members," Dong said.

China and ASEAN countries have held two rounds of talks in a bid to seal the Code of Conduct in the South China Sea. Meanwhile, "not to internationalize the South China Sea issue" is one of the principles written in the Declaration on the Conduct of Parties in the South China Sea, which was reached 10 years ago by China and ASEAN countries including the Philippines.

Dong said one of the reasons that some countries provoke territorial disputes is that certain East Asian countries set too high an expectation over Washington's strategy of returning to the Asia-Pacific region. They are half-hearted in promoting economic cooperation in East Asia by making use of the Washington-led TPP as a kind of bargaining chip.

U.S. President Barack Obama didn't forget to peddle its TPP during the ASEANorganized East Asia Summit. On the sidelines of the summit, the United States called a meeting of members of the TPP in an apparent effort to accelerate its own free trade talks.

During the summit, Chinese Premier Wen Jiabao expressed his wishes that concerted efforts should be made to seek cooperation in order for more countries to benefit from East Asia's economic development.

"China welcomes the constructive efforts made by various countries to promote cooperation in East Asia and values the favorable conditions of peace, stability, prosperity and development in the region," Wen said. China disapproves of any attempt at the summit to highlight territorial and maritime disputes and exaggerate the tense atmosphere, he added.

Dong echoed the premier's view. He said regional countries should shelve their differences to deepen cooperation in various fields and promote the establishment of the RCEP—moves that will enhance the whole region's capacity for sustainable development.

Email us at: yunlintao@bjreview.com