The Regional Comprehensive Economic Partnership (RCEP) entered into force on January 1, ushering in a new phase of economic integration in the Asia-Pacific region. The trade deal includes 15 Asia-Pacific countries, which account for about a third of global GDP and population, making it the world’s largest trade bloc. China, Japan, South Korea, Australia, New Zealand, Brunei, Cambodia, Laos, Singapore, Thailand, and Vietnam have completed ratification. The remaining signatories are Indonesia, Malaysia, the Philippines, and Myanmar.
RCEP members will enjoy preferential treatment for exports and investments, which is expected to boost regional economic connectivity, analysts said. These countries have agreed to eventually remove levies on over 90% of goods traded within the bloc. RCEP is also the first free trade agreement that connects Asia’s biggest economies; China, Japan, and South Korea. Japan’s trade ministry said that tariffs on Japanese electric vehicle components exported to China would be eliminated under the deal.
The United Nations Conference on Trade and Development (UNCTAD) said in a study that exports within the bloc would grow 2% or about $41.8 billion from 2019 levels thanks to the tariff concessions. Japan is expected to be the biggest beneficiary with estimated effects on exports at $20.2 billion, followed by China at $11.2 billion and South Korea at $6.7 billion. On the other hand, Vietnam and Indonesia are expected to see adverse effects of $1.5 billion and $0.3 billion, respectively.
Tags: All Products,AlwaysFree,Asia Pacific,Australia,China,English,Indonesia,Japan,Korea,Malaysia,Myanmar,NEA,Philippines,SEA,Singapore,Thailand,VietnamPublished on January 3, 2022 3:12 PM (GMT+8)
Last Updated on January 3, 2022 3:12 PM (GMT+8)