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    The World'S Largest Free Trade Zone 8 Years RCEP 15 Video Conference Signed!

    2020/11/15 14:58:00 25

    Fta

    Countdown to RCEP signing


    The fourth regional comprehensive economic partnership agreement, which has been under preparation for a long time, has finally taken on new trends. At the media briefing held on the 11th of this month, our Ministry of Commerce officially stated that 15 countries have completed the negotiations on the fourth regional comprehensive economic partnership agreement (RCEP).

    All the parties have reached a formal agreement on the 15th of this month, and all the legal agreements have been signed.

    These 15 countries include China, Japan, South Korea, ten ASEAN countries, Australia and New Zealand. The conclusion of RCEP will establish Asia's largest free trade area and cover 30% of global GDP and trade volume. It will also be the first free trade framework among China, Japan and South Korea.

    RCEP aims to establish a free trade agreement with a unified market by reducing tariff and non-tariff barriers. Last November, India decided to withdraw from the talks because of differences over tariffs, trade deficits with other countries and non-tariff barriers, but the remaining 15 countries said they would try to sign the agreement by 2020.


    RCEP has finally settled down and will give China a boost in foreign trade. ?


    The road to negotiations was long and bumpy, and India suddenly announced its withdrawal


    Regional comprehensive economic partnership Partnership (RCEP) is a free trade agreement initiated by 10 ASEAN countries. It is composed of 16 countries, including China, Japan, South Korea, Australia, New Zealand and India, which have free trade agreements with ASEAN. It aims to establish a unified market by reducing tariff and non-tariff barriers. In addition to tariff reduction, the parties also discussed the formulation of rules in a wide range of fields, such as intellectual property rights, e-commerce (EC), and customs procedures.


    From the perspective of the preparatory process of the regional comprehensive economic partnership, RCEP is planned and promoted by ASEAN, and China has played an important role in the whole process.

    At the 21st ASEAN Summit held at the end of 2012, 16 countries jointly signed the RCEP framework and announced the formal start of negotiations. In the following eight years, many rounds of long and complicated negotiations were launched.

    On November 4, 2019, Premier Li Keqiang attended the third RCEP leaders' meeting in Bangkok, Thailand. At the meeting, RCEP completed the main body of negotiations, and leaders of 15 countries except India issued the RCEP joint statement, which advocated that the consultation would continue with the goal of signing in 2020. So far, RCEP has ushered in a very important milestone.


    However, it was also at this meeting that India, which had changed its attitude before, announced its withdrawal at the last minute of the negotiations and decided not to participate in the signing of RCEP. At that time, Indian Prime Minister modi believed that differences in tariffs, trade deficit with other countries and non-tariff barriers were the reasons why India decided not to sign RCEP.


    At that time, the Japanese economic news network once analyzed that:

    In the negotiations, India has a huge trade deficit with China, and if the tariff is lowered, it is worried that the domestic industry will be hit, so there is a strong sense of crisis; in the final stage of the negotiation, India also hopes to protect its various industries; because of the stagnation of its economy, modi has to turn to the high unemployment rate and poverty which are more concerned than trade liberalization Internal affairs.

    On November 4, 2019, Indian Prime Minister modi attended the ASEAN summit


    In response to these concerns, then Chinese Foreign Ministry spokesman Geng Shuang stressed that China has no intention of pursuing a trade surplus with India, and both sides can further broaden their thinking and constantly enlarge the cooperation cake. In the spirit of mutual understanding and accommodation, China is willing to continue to negotiate with all parties to solve the problems in the negotiations with India, and welcomes India to join the agreement as soon as possible.

    In the face of India's sudden "retreat", it is difficult for some countries to figure out their real intentions. For example, some ASEAN countries can't bear the attitude towards India and propose to take the agreement of "excluding India" as an option in the negotiation. The purpose of the negotiation is to complete the intra regional trade negotiations as soon as possible.


    However, Japan has repeatedly stressed the importance of India in the RCEP negotiations, showing an attitude of "not without India". At that time, some Japanese media said that the reason why Japan opposed "excluding India" was that it hoped that India could participate in the "free and open Indian Pacific concept" proposed by Japan and the United States as economic and diplomatic strategies, which had achieved the goal of "containing" China.

    Now, seeing that 15 countries are about to sign RCEP, Japan has accepted the fact that India has not joined. ?



    The regional GDP growth will be promoted, and the importance of RCEP will be more prominent under the epidemic situation


    For the entire Asia Pacific region, RCEP means huge business opportunities. Zhang Jianping, director of the regional economic cooperation research center of the Research Institute of the Ministry of Commerce, pointed out that RCEP will cover two major markets with the most potential for growth in the world, one is the Chinese market with a population of 1.4 billion, and the other is a market with more than 600 million people in ASEAN. At the same time, these 15 economies, as important engines of economic growth in the Asia Pacific region, are also important sources of global growth.

    Zhang Jianping pointed out that once the agreement is implemented, due to the elimination of tariff barriers, non-tariff barriers and investment barriers, the demand for mutual trade within the region will grow rapidly, which is called trade creation effect. At the same time, some of the trade with foreign partners will be transferred to intra regional trade, which is the transfer effect of trade. In terms of investment, the agreement will also bring new investment creation effect. Therefore, RCEP will boost the GDP growth of the whole region, create more jobs, and significantly improve the well-being of people in all countries.


    The global epidemic situation is accelerating, the world economy is in a gloomy state, and unilateralism and bullying are prevalent. As an important member of regional cooperation in East Asia, China has taken the lead in fighting epidemic situation and economic recovery growth. In this context, the meeting should send the following important signals to the outside world:

    First, boost confidence and strengthen unity. Confidence is more important than gold. Only unity and cooperation can prevent and control the epidemic.

    Second, deepen cooperation in the fight against epidemic diseases. The mountains and rivers are different, the wind and the moon are in the same day. Since the outbreak of the epidemic, China and regional countries have been in the same boat and supported each other. All parties should further deepen public health cooperation.

    Third, focus on economic development. Economic globalization, trade liberalization and regional cooperation are crucial to jointly fight against the epidemic, promote economic recovery and stabilize the supply chain industry chain. China is willing to build a "fast track" and "green channel" network for personnel and goods exchanges with countries in the region to help resume work and production and lead economic recovery.


    Fourth, we should grasp the direction of regional cooperation and properly handle differences. All parties should firmly support multilateralism, adhere to the central position of ASEAN, adhere to the important principles of consensus, taking into account the comfort of all parties, and not introducing bilateral differences into multilateral relations, so as to jointly safeguard peace and stability in the South China Sea. ?



    RCEP is a comprehensive, modern, high quality and reciprocal free trade agreement


    In the previous Bangkok joint statement, there was a footnote describing the 20 chapters of the agreement and the titles of each chapter. Through the observation of these contents, we can know that RCEP will be a comprehensive, modern, high-quality and reciprocal free trade agreement.

    It is a comprehensive free trade agreement. It has 20 chapters, including the basic characteristics of FTA, trade in goods, trade in services, investment access and corresponding rules.

    It is a modern free trade agreement. It includes e-commerce, intellectual property rights, competition policy, government procurement, small and medium-sized enterprises.

    It is a high-quality free trade agreement. In terms of trade in goods, the level of opening up will reach more than 90%, which is higher than that of other countries in the WTO. In terms of investment, investment access negotiations will be conducted in the form of a negative list.

    It is a mutually beneficial FTA. This is mainly reflected in the trade in goods, trade in services, investment rules and other areas to achieve a balance of interests. In particular, the agreement also includes provisions on economic and technical cooperation, and provides some transitional arrangements for the least developed countries such as Laos, Myanmar and Cambodia, including providing more favorable conditions for these members to better integrate into regional economic integration. ?




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