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    The World'S Largest Free Trade Area Officially Set Sail, Injecting Strong Impetus Into Global Economic Growth

    2022/1/6 16:14:00 0

    Global Free Trade

    On January 1, 2022, the regional comprehensive economic partnership agreement (RCEP) came into effect, and the world's largest free trade area officially set sail. Against the background of complex and changeable international situation, RCEP has been put into effect on schedule, which fully reflects the confidence and determination of all parties concerned to jointly safeguard multilateralism and free trade and promote regional economic integration. It will promote the deep integration of regional economy and the development of free trade, and inject strong impetus into regional and global economic growth.

       Assist the construction of regional economic integration

    Since January 1, RCEP has entered into force in Brunei, Cambodia, Laos, Singapore, Thailand, Vietnam, China, Japan, New Zealand and Australia. South Korea will join the implementation on February 1. The remaining member states will also take effect after completing their domestic approval procedures.

    The total population is 2.27 billion, the gross domestic product (GDP) is up to 26 trillion US dollars, and the total export volume is 5.2 trillion US dollars... RCEP officially takes effect, which means that the economic volume of about 30% of the world will form an integrated market. Economists at HSBC predict that the global share of RCEP economic circle will increase to 50% by 2030.

    As a modern, comprehensive, high-quality and mutually beneficial regional free trade agreement, RCEP covers many fields such as trade in goods, trade in services, investment, intellectual property rights, e-commerce and so on. ASEAN Secretary General Lin Yuhui said that RCEP will help the construction of regional economic integration and promote the formation of a unified production base and product market by implementing rules of origin accumulation, simplifying customs procedures, promoting trade facilitation and providing more transparent, fairer and more predictable trade rules.

    After RCEP comes into effect, more than 90% of goods trade between approved members will eventually realize zero tariff. According to statistics, by 2030, RCEP is expected to lead to a net increase of 519 billion US dollars in exports and 186 billion US dollars in national income. "The economic size and trade vitality of this new trade area will make it the focus of Global trade." According to a recent report released by the United Nations Conference on Trade and development (UNCTAD), in 2019, the trade volume between the 15 RCEP member countries will be about 2.3 trillion US dollars, and the tariff reduction will further promote the export between the member countries by nearly 2%, with a value of about 42 billion US dollars.

    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 the development of regional economy and trade, and strengthen the resilience of regional supply chain and industrial chain.

    Stephen Perry, chairman of 48 UK group clubs, said that the entry into force of RCEP is an important step forward in the Asia Pacific region, which will form three major free trade economic circles in the Asia Pacific region, North America and the European Union.

    Yan Jinyong, Minister of trade and industry of Singapore, believes that the entry into force of RCEP proves that the region maintains its determination and commitment to deepen economic integration even in difficult times.

       Opening a new chapter in regional economic and trade exchanges

    RCEP is regarded as an important engine of trade and investment, which is expected and welcomed by all parties.

    As the "integrator" of regional economic and trade rules, RCEP integrates several "10 + 1" free trade agreements signed by ASEAN and China, Japan, South Korea and other countries, as well as many pairs of existing free trade partnerships among China, Japan, South Korea, Australia and New Zealand.

    Japan's minister of economy and industry, Hiroshi Fukuyama, said the agreement would 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% and create about 570000 jobs. According to the report of the conference on Trade and development, Japan's exports are expected to increase by about $20 billion, benefiting from the tariff concessions of RCEP.

    Thailand's Ministry of Commerce predicts that more than 39000 kinds of goods in Thailand will enjoy tariff concessions, and nearly 30000 of them will enjoy zero tariff in the first stage. "Thailand's economy will benefit from the larger market brought about by RCEP, especially in terms of exports," said olamon, director of the Department of trade negotiations at the Ministry of Commerce of Thailand In 2020, the trade volume between Thailand and RCEP member countries will be about 7.87 trillion baht (about 1.51 trillion yuan), accounting for 57.5% of the total trade volume of the country; With the increase of exports, the volume of trade is expected to continue to grow in 2022.

    The monetary authority of Singapore believes that by reducing tariffs and integrating trade rules by RCEP, Singapore and the Asia Pacific region can further integrate into and benefit from the global supply chain. RCEP brings together the respective advantages of relevant countries in product R & D, industrial production and low-cost labor, providing more opportunities for enterprises to strengthen supply and trade ties.

    According to the Ministry of Commerce of Cambodia, after the RCEP comes into effect, Cambodia will enjoy preferential tariffs on a variety of agricultural and sideline products and industrial products, which will boost Cambodia's GDP by 2%, increase exports and investment by 7.3% and 23.4% respectively, which will strongly support Cambodia's economic recovery. Li Xixin, chief executive of smile mall, Cambodia's main e-commerce platform, said recently that RCEP has made relevant provisions in digital authentication, consumer protection, tariff and other aspects, and cross-border e-commerce will benefit greatly from it.

    "RCEP will open a new chapter in regional economic and trade exchanges." According to Benle luanbaser, vice president of the Lao National Chamber of Commerce and industry, RCEP is of great significance to promoting regional free trade, and will allow China Laos railway to play an important role in promoting trade and investment in Laos, and promote the practice of multilateral cooperation.

    Lin Yuhui said that the rapid completion of the RCEP approval process is a true reflection of Member States' commitment to promoting fairness and openness and building a multilateral trading system beneficial to the region and the world. RCEP will greatly promote the post epidemic economic recovery 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 an enterprise in Sichuan Province of China received the first RCEP certificate of origin in Sichuan issued by Chengdu Customs, and the tariff was reduced from 9% to 0, enjoying the dividend brought by RCEP.

    At 0:05 on January 1, the x9101 container train, loaded with more than 800 tons of goods, left Nanning International Railway Port in Guangxi and is expected to arrive in Hanoi, Vietnam in 28 hours. Thanks to the effective implementation of RCEP, more than 10 million US dollars worth of goods transported by trains will enjoy substantial tariff relief.

    The first batch of 158 RCEP certificates of origin were issued by China Council for the promotion of international trade and local organizations on January 1, involving 69 enterprises in 12 provinces of China, covering textiles, chemical products, medical products, food, etc. the export destination countries are Japan, Australia and other member states with effect, involving the export amount of 12 million US dollars, and the tariff reduction is expected to be 180000 US dollars.

    RCEP members are important economic and trade partners of China, and the total trade volume between China and other RCEP members accounts for about one third of China's total foreign trade. The entry into force of RCEP will enable partners to fully share the opportunities and development dividends of China's opening up.

    Ren Hongbin, Vice Minister of Commerce of China, said that the entry into force and implementation of RCEP is a new milestone in China's opening up, which will provide strong support for the construction of a new development pattern and become a link and bridge between China's domestic and international dual circulation.

    Yu Hong said that China's full support for RCEP, on the one hand, shows China's firm commitment to actively safeguard free trade, on the other hand, it also expresses China's determination to continue to open up to the outside world and achieve higher quality development. "The door of China's opening up will not be closed, it will only open wider and wider. This can be clearly seen from China's active participation in RCEP. The entry into force of RCEP will further promote the 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 the enterprises of Member States to expand investment and increase market share. Zheng Zuoliang, a Brunei businessman who runs a trading company, said that with RCEP coming into effect, ASEAN agricultural and sideline products and other producers will usher in more opportunities in the Chinese market, "we see the willingness of China to share the fruits of development with the world.".

    701 the binding obligations of the treaty are ready for implementation; We have held several special training programs for RCEP all over the country; In the face of great opportunities brought by RCEP, China is ready to implement the agreement.

    In the future, RCEP will vigorously promote regional economic integration of higher quality and deeper level, and make important contributions to regional and Global trade and investment growth, economic recovery and prosperity and development.

    (source: People's daily)

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