RCEP will inject new impetus into the recovery of the Asia-Pacific economy

Xinhua News Agency, Manila, November 9th (International Observation) RCEP will inject new impetus into the recovery of the Asia-Pacific economy

Xinhua News Agency reporter Liu Kai Yan Jie

The Regional Comprehensive Economic Partnership Agreement (RCEP), which reached the threshold of entry into force earlier this month, is expected to become one of the focuses of the Asia-Pacific Economic Cooperation meeting this week. Observers believe that after the RCEP takes effect, it will help promote economic interconnection in the Asia-Pacific region, accelerate the process of regional economic integration, promote economic and trade cooperation and economic growth, and inject new impetus into regional economic recovery.

　　Promote the multilateral trading system

The ASEAN Secretariat, the depositary of RCEP, announced on the 2nd that it has received the approval letter submitted by Brunei, Cambodia, Laos, Singapore, Thailand, Vietnam and 4 non-ASEAN members from Brunei, Cambodia, Laos, Singapore, Thailand and Vietnam. The entry into force threshold is reached, and it will take effect for the ten countries mentioned above on January 1, 2022.

RCEP was formally signed on November 15, 2020. There are currently 15 member states whose total population, economic volume, and total trade account for about 30% of the world‘s total. It is the world‘s largest free trade zone. Among them, most member states are also members of the Asia-Pacific Economic Cooperation Organization.

ASEAN Secretary-General Lin Yuhui said that the rapid completion of the RCEP approval process is a true reflection of member states’ commitment to promoting a fair, open, and beneficial multilateral trading system in the region and the world. The higher level of openness, larger markets, and better policies brought about by the entry into force of the agreement will give rise to more new development opportunities and potentials.

Hu Yishan, a senior researcher at the Singapore Institute of International Affairs, said that as unilateralism and protectionism are on the rise, RCEP has shown the world the advantages of sharing the market and common prosperity, injecting new vitality into free trade and multilateralism.

The chief negotiator of RCEP in the Philippines, Alan Gupti, said that RCEP provides a multilateral mechanism that is conducive to business development. By setting clear and transparent rules and procedures, it provides a mechanism for trade exchanges between member states.

　　Accelerate regional economic integration

Observers generally believe that, as the world‘s largest free trade zone, RCEP will promote the interconnection and interoperability between economies in the Asia-Pacific region and accelerate the process of regional economic integration.

The report of Japan’s Mitsubishi Research Institute believes that RCEP will not only bring tariff cuts, but will also promote trade and investment by improving market access in the region, bringing economic effects such as supply chain restructuring, and improving supply chain efficiency.

The Peterson Institute for International Economics in the United States estimates that by 2030, RCEP is expected to drive a net increase of US$519 billion in exports of member countries and a net increase of US$186 billion in national income.

New Zealand Minister of State for Trade and Export Growth Phil Twyford said that RCEP will bring huge economic benefits to New Zealand companies, creating opportunities for New Zealand export products to enter the RCEP value chain, and looser market access will also facilitate New Zealand trade in services. And investment into markets such as East Asia and ASEAN.

Among non-ASEAN members, China took the lead in completing the approval of the RCEP agreement, and demonstrated its determination to safeguard the multilateral trading system and actively participate in regional economic integration with practical actions. Chinese Vice Minister of Commerce Wang Bingnan recently stated at the 4th Hongqiao International Economic Forum that in the future, China will promote a higher level of opening up, actively promote the process of regional economic integration, and create more demand for the region and the world, and provide greater A new market and more opportunities will promote the development of economic globalization in a more open, inclusive, inclusive, balanced, and win-win direction.

　　Promote regional economic recovery

Since last year, many countries in the Asia-Pacific region have experienced repeated ups and downs of the new crown epidemic, leading to economic stagnation or even recession. Many countries strive to reopen their economies and regard RCEP as an important guarantee for the economic recovery of their countries and regions. Observers believe that the entry into force of the agreement is expected to push the regional economy out of the haze of the epidemic and inject new impetus into the economic recovery of the Asia-Pacific region.

Philippine Minister of Trade and Industry Ramon Lopez said that trade and investment are important means to promote economic recovery. Therefore, a larger free trade zone will be established in the region to provide investors with a more stable environment and higher availability. Predictability and greater confidence are particularly important.

Hu Yishan said that RCEP is particularly helpful in reducing tariffs and non-tariff barriers and realizing more free trade in goods and services. ASEAN countries are eager to further develop China’s huge market after the RCEP takes effect, look for business opportunities, and accelerate the economic recovery of the region.

Jie Kebi, executive director of the APEC Business Advisory Committee, said that advancing the process of regional economic integration represented by RCEP and promoting the deep integration of regional economies and the development of free trade conform to the economic interests of the Asia-Pacific region and the world. The recovery has a positive impact.