The world‘s largest free trade zone officially sets sail-
Inject strong impetus into regional and global economic growth
On January 1, 2022, the “Regional Comprehensive Economic Partnership Agreement” (RCEP) came into effect, and the world‘s largest free trade zone officially set sail. In the current complex and volatile background of the international situation, RCEP will be implemented as scheduled, which fully reflects the confidence and determination of all parties to jointly safeguard multilateralism and free trade, and promote regional economic integration, and will promote the deep integration of regional economies and the development of free trade. , To inject strong impetus into regional and global economic growth.
Contribute to the construction of regional economic integration
Starting from January 1, RCEP has officially entered into force for 10 countries including Brunei, Cambodia, Laos, Singapore, Thailand, Vietnam, China, Japan, New Zealand and Australia. South Korea will join the effective implementation on February 1. The remaining member states will also take effect one after another after completing their domestic approval procedures.
The total population is 2.27 billion, the gross domestic product (GDP) is 26 trillion US dollars, and the total export volume is 5.2 trillion US dollars… RCEP officially came into effect, which means that about 30% of the global economy will form an integrated market. Economists at HSBC predict that by 2030, the global economic volume of the RCEP economic circle will increase to 50%.
As a modern, comprehensive, high-quality, and mutually beneficial large-scale regional free trade agreement, RCEP covers many areas such as trade in goods, trade in services, investment, intellectual property, and e-commerce, among which tariff reduction is an important content. ASEAN Secretary-General Lin Yuhui stated that RCEP will facilitate the construction of regional economic integration and promote the formation of a unified economy by implementing rules on accumulation of origin, simplifying customs procedures, promoting trade facilitation, and providing more transparent, fairer, and more predictable trade rules. Production base and product market.
After the RCEP takes effect, more than 90% of the goods trade between approved members will eventually achieve zero tariffs. According to statistics, 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. “The economic scale and trade vitality of this emerging trade area will make it the center of gravity for global trade.” The trade volume is approximately US$2.3 trillion, and tariff reductions will further increase exports among member countries by nearly 2%, valued at approximately US$42 billion.
Yu Hong, a senior researcher at the Institute of East Asian Studies at the National University of Singapore, said that the effective implementation of RCEP will help promote regional economic and trade development and strengthen the resilience of regional supply chains and industrial chains.
Stephen Perry, Chairman of the 48 Group Club of the United Kingdom, said that the entry into force of RCEP is an important step in the Asia-Pacific region, and the world will form three major free trade economic circles in the Asia-Pacific, North America and the European Union.
Singapore’s Minister of Trade and Industry Yan Jinyong believes that the entry into force of RCEP proves the region’s determination and commitment to deepen economic integration even in difficult times.
Open a new chapter in regional economic and trade interoperability
RCEP is regarded as an important engine of trade and investment, and is expected and welcomed by all parties.
As an “integrator” of economic and trade rules in the region, RCEP integrates multiple “10+1” free trade agreements signed between ASEAN and China, Japan, South Korea and other countries, as well as the existing five countries of China, Japan, South Korea, Australia, and New Zealand. Many pairs of free trade partnerships.
Japanese Minister of Economy, Trade and Industry Hiroshi Kajiyama said that the agreement will strengthen Japan’s ties with the Asia-Pacific region, the world‘s economic growth center. The Japanese government estimates that RCEP will boost Japan’s GDP by about 2.7% while creating about 570,000 jobs. According to the UNCTAD report, Japan’s exports are expected to increase by approximately US$20 billion thanks to RCEP’s tariff reduction.
The Ministry of Commerce of Thailand predicts that Thailand will have more than 39,000 kinds of goods enjoying tariff reductions, of which nearly 30,000 kinds of goods will enjoy zero tariffs in the first stage. The Director of the Trade Negotiation Department of the Ministry of Commerce of Thailand, Olamong said: “Thailand’s economy will benefit from the larger market brought by RCEP, especially in terms of exports.” In 2020, Thailand’s trade with RCEP member states will be about 7.87 trillion yuan. Thai baht (approximately 1.51 trillion yuan), accounting for 57.5% of the country’s total trade; with the increase in exports, it is expected that the trade volume will continue to grow in 2022.
The Monetary Authority of Singapore believes that RCEP reduces tariffs and integrates trade rules, Singapore and the Asia-Pacific region can be more deeply integrated into the global supply chain and benefit. RCEP brings together the respective advantages of relevant countries in product development, industrial production and low-cost labor, and provides more opportunities for enterprises to strengthen supply and trade links.
The Cambodian Ministry of Commerce stated that after the RCEP takes effect, Cambodia’s various agricultural and sideline products and industrial products will enjoy preferential tariffs, which will promote Cambodia’s GDP increase by 2%, exports and investment by 7.3% and 23.4% respectively, which strongly supports Cambodia’s economic recovery. Li Xixin, CEO of Cambodia’s main e-commerce platform “Smile Mall”, said recently that RCEP has made relevant regulations in terms of digital certification, consumer rights protection, and tariffs, and cross-border e-commerce will benefit greatly from it.
“RCEP will open a new chapter in regional economic and trade interoperability.” In the view of Lao National Chamber of Commerce and Industry Deputy Chairman Ben Le Luang Pakse, RCEP is of great significance to promoting free trade in the region. It will also allow China-Laos Railway to promote trade and cooperation. Play an important role in investing in old people and promote the practice of multilateral cooperation.
Lin Yuhui said that the rapid completion of the RCEP approval process is a true portrayal of member states’ commitment to promoting fairness, openness, and building a multilateral trading system that is beneficial to the region and the world. RCEP will greatly promote economic recovery after the epidemic and benefit the people of the region and the world.
Share China’s opening up opportunities and development dividends
Just after 0:00 on January 1, a batch of aluminum cans exported to Thailand by a Chinese company in Sichuan received the first Sichuan RCEP certificate of origin issued by Chengdu Customs. The tariff was reduced from the previous 9% to 0, and the RCEP belt was truly enjoyed. The bonus comes.
At 0:05 on January 1, the X9101 container train with more than 800 tons of cargo departed from Guangxi Nanning International Railway Port and is expected to arrive in Hanoi, Vietnam in 28 hours. Benefiting from the effective implementation of RCEP, goods valued at more than US$10 million will enjoy substantial tariff reductions.
The China Council for the Promotion of International Trade and local agencies issued the first batch of 158 RCEP certificates of origin on January 1, involving 69 companies in 12 provinces in China, covering areas including textiles, chemical products, medical products, food, etc. The export destinations are Japan and Australia The member countries that have come into effect involve an export value of 12 million U.S. dollars, and it is estimated that the tariff reduction and exemption is 180,000 U.S. dollars.
RCEP member countries are China’s important economic and trade partners, and the total trade volume between China and other RCEP member countries accounts for about one-third of China’s total foreign trade. The entry into force of RCEP will allow partners to more fully share China’s opening-up opportunities and development dividends.
Ren Hongbin, Vice Minister of the Ministry of Commerce of China, said that the effective implementation of RCEP is a new milestone in China’s opening up to the outside world. It will provide strong support for the construction of a new development pattern and become a link and bridge for China to connect the domestic and international dual cycles.
Yu Hong said that China’s full support for RCEP shows on the one hand China’s firm commitment to actively safeguarding free trade, and on the other hand, it also expresses China’s determination to continue to open up to the outside world and achieve higher-quality development. “China’s door to opening up will not be closed, but will only open wider. This can be clearly seen from China’s active participation in RCEP. The effective RCEP will also further promote economic and trade ties between China and ASEAN countries.”
As the largest economy in RCEP, China’s huge market will bring new business opportunities for member states’ enterprises to expand investment and increase market share. Zheng Zuoliang, a Brunei businessman who runs a trading company, said that with the effective of RCEP, manufacturers of agricultural and sideline products in ASEAN will usher in more opportunities in the Chinese market. “We have seen China’s willingness to share the fruits of development with the world.”
All 701 binding obligations have been prepared for compliance; a number of RCEP special trainings have been held nationwide; the “Guiding Opinions on High-Quality Implementation of RCEP” will be issued in a timely manner… In the face of the huge opportunities brought by RCEP, China is an agreement Preparations for implementation are ready.
In the future, RCEP will vigorously promote the realization of higher-quality and deeper economic integration in the region, and make important contributions to the growth of regional and global trade and investment, economic recovery and prosperity.
(Our newspaper, Bangkok, January 2nd)
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