After China And Japan Establish Free Trade Relations, Which Tariff Will Be Reduced Or Reduced

On November 15, with the formal signing of the regional comprehensive economic partnership agreement (RCEP), the largest free trade zone in the world was born. Among them, China and Japan have established free trade relations through RCEP agreement.

This is the first time that China has signed a free trade agreement with the world's top ten economies. It is also the first time that China and Japan have reached a bilateral tariff reduction arrangement, achieving a historic breakthrough.

RCEP members include 10 ASEAN countries, China, Japan, South Korea, Australia and New Zealand. In the RCEP agreement, the tariff concessions among the members are mainly to reduce the tariff to zero immediately and within ten years. The final number of zero tariff products in goods trade will exceed 90%.

It is understood that in terms of trade in goods. After the agreement comes into effect, more than 90% of the goods trade in the region will eventually realize zero tariff, and mainly reduce the tax to zero immediately and within 10 years, so that RCEP free trade area is expected to realize all goods trade liberalization commitments in a short time.

According to the Japan economic news, under the framework of the RCEP agreement, 87% of Japan's auto parts exports to China will be the target of tariff cancellation.

The total trade volume between China and Japan is US $31.56 billion, including US $31.56 billion from China in 2019. Among the imported goods, IC and auto related parts ranked top.

It is reported that under the RCEP agreement, the current 3% tariff on some gasoline vehicle engine parts will be reduced immediately; 10% and 12% tariff on motor parts of pure electric vehicles will be reduced or reduced in the 16th or 21st year after the signing of the agreement; 15% tariff on oven and microwave oven will be reduced in the 11th year; The 12% tariff on soy sauce, 10% tariff on shellfish and 40% tariff on Japanese wine will be reduced in the 21st year.

Some Japanese auto parts exporters said that with the cancellation of RCEP internal tariff, Japanese companies could share parts among production bases in Asian countries, making it easier for supply chains to complement each other.

In terms of China's export to Japan, the tariff of 4.4% to 13.4% of clothing will be reduced immediately or in the 16th year; the tariff of Shaoxing wine and rice wine will be reduced in the 21st year, while the important agricultural products such as rice, wheat, beef, pork, dairy products, sugar and other important agricultural products are excluded from the scope of tariff reduction and exemption.