RCEP helps boost fruit trade between China, ASEAN countries
So far, 66 kinds of fruits from 9 ASEAN countries have gained access to Chinese markets
From the bananas of Myanmar to the longan of Cambodia, more fruits from ASEAN countries are reaching Chinese consumers thanks to the vigorous development of economic and trade relations between China and ASEAN, especially after the implementation of the Regional Comprehensive Economic Partnership (RCEP).
Regional Comprehensive Economic Partnership (RCEP)
The Regional Comprehensive Economic Partnership (RCEP) is a free trade agreement (FTA) between the ten member states of the Association of Southeast Asian Nations (ASEAN) (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam) and its five FTA partners (Australia, China, Japan, New Zealand and Republic of Korea).
Regional Comprehensive Economic Partnership (RCEP)
The Key Benefits are:
- The RCEP is a modern, comprehensive, high-quality and mutually beneficial economic partnership that builds on existing bilateral ASEAN agreements with its 5 Free Trade Agreement (FTA) Partners. It will further broaden and deepen Singapore’s economic linkages and connectivity with the region, open up opportunities and provide businesses with preferential access in the region.
- On average, tariff elimination of about 92% of goods traded among RCEP Parties. Additional preferential market access for specific products including mineral fuels, plastics, other chemical products, miscellaneous food preparations and beverages in selected RCEP markets such as China, Japan and Korea.
- Streamlined rules of origin to give businesses greater flexibility to tap on preferential market access benefits. Regional cumulation provisions will also allow businesses to take advantage of regional supply chains.
- Simplified customs procedures and enhanced trade facilitation provisions will allow efficient administration of procedures and expeditious clearance of goods including the release of express consignments and perishable goods within 6 hours of arrival.
- Enhanced commitments above existing ASEAN Plus One FTAs in Professional Services, Research and Development, Computer and Related Services, Distribution and Logistics Services, among others.
- RCEP includes commitments to prohibit performance requirements on investors and provisions to lock in future relaxation of measures and mitigate back tracking.
- Other benefits include expanded scope and commitments in new areas such as E-Commerce, Competition policy and Intellectual Property Rights.
CLAIMING PREFERENTIAL TARIFF BENEFITS FOR GOODS EXPORTED FROM SINGAPORE TO PARTIES UNDER RCEP
The RCEP is a Free Trade Agreement between the 10 ASEAN Member States, Australia, China, Japan, Republic of Korea, and New Zealand. The RCEP provides improved market access in terms of preferential tariff treatment for exports of RCEP originating goods to a Party in RCEP as well as for imports of RCEP originating goods into Singapore.
The RCEP will take effect on 1 Jan 2022. With effect from the following dates, preferential tariff benefits for Singapore-originating goods can be claimed in the respective RCEP country:
- 1 Jan 2022 for Australia, Brunei Darussalam, Cambodia, China, Japan, Lao PDR, New Zealand, Singapore, Thailand, and Viet Nam;
- 1 Feb 2022 for Republic of Korea
Preferential tariff treatment for goods originating from the other RCEP parties, namely, Indonesia, Malaysia, Myanmar, and Philippines will not be granted preferential tariff treatment as the agreement has yet to enter into force for these countries as of the date of this circular. We will progressively update our circular and website once the remaining countries are ready to implement the RCEP.
An expert explains: What is RCEP, the world’s biggest trade deal?
Regional Comprehensive Economic Partnership: what it is and how it differs from other trade deals
RCEP is a big deal, literally and metaphorically. When it’s signed off, the Regional Comprehensive Economic Partnership will create a free trade zone covering about 30% of the world’s gross domestic product, trade and population. It also marks the first time Japan has had an agreement with China and with South Korea. The Japanese government approved the deal at the end of April – and expects it to boost GDP by 2.7% and create more than half a million jobs, according to Kyodo News.
RCEP – which has been over a decade in the making – will eliminate tariffs on 91% of goods as well as introduce rules on investment and intellectual property to promote free trade. It covers 15 member countries, but there’s also some overlap with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Here, Deborah Elms, Executive Director of the Asian Trade Centre in Singapore, explains what RCEP is, how it differs from other trade deals and whether it will come off.
It’s a trade deal that sets up trade in Asia, for Asia. We’ve had a lot of trade in Asia, of course, we’ve had a lot of raw materials, parts and components that move back and forth. And they’re often given final assembly [in Asia], but they’re typically then shipped to the US or Europe. We don’t have as much final production that ends up in Asia. One of the reasons we don’t have that is because trade in the region, especially for finished goods, is too difficult, too expensive – tariffs in place, non-tariff challenges, etc – and so you have less trade in the region than you should have. It’s not a perfect agreement, but RCEP makes it more likely that firms will create supply chains in Asia, for Asia. As the agreement comes into force and becomes more meaningful for firms, then it will accelerate over time.
What you need to know about Regional Comprehensive Economic Partnership (RCEP)
The RCEP is a Free Trade Agreement under negotiation between ASEAN Member States and ASEAN’s FTA partners. When completed, the agreement will be between 16 countries, which make up 45% of the world population and contribute a third of the world’s GDP.
The RCEP was launched at the 21st ASEAN and Related Summits in Phnom Penh, Cambodia in 2012. The negotiations for the RCEP commenced in 2013.
The RCEP initiative aims to be an ASEAN-led process through which ASEAN would broaden and deepen its economic engagements with its FTA partners. The RCEP would lead to greater economic integration, support equitable economic development and strengthen economic cooperation among the countries involved.
Regional Comprehensive Economic Partnership
The Regional Comprehensive Economic Partnership (RCEP) is a free trade agreement among the Asia-Pacific nations of Australia, Brunei, Cambodia, China, Indonesia, Japan, South Korea, Laos, Malaysia, Myanmar, New Zealand, the Philippines, Singapore, Thailand, and Vietnam. The 15 member countries account for about 30% of the world's population (2.2 billion people) and 30% of global GDP ($29.7 trillion), making it the largest trade bloc in history. Signed in November 2020, RCEP is the first free trade agreement among the largest economies in Asia, including China, Indonesia, Japan, and South Korea.
The RCEP was conceived at the 2011 ASEAN Summit in Bali, Indonesia, while negotiations formally launched during the 2012 ASEAN Summit in Cambodia. India, which took part in the initial negotiations but later decided to opt out, was invited to join the bloc at any time. Any other country or separate customs territory in the region can accede to the pact from 1 July 2023 onward. The treaty was formally signed on 15 November 2020 at the virtual ASEAN Summit hosted by Vietnam. As of 17 January 2022, seven of the ten ASEAN and all five of the non-ASEAN signatories have deposited their instruments of RCEP ratification with the Secretary-General of ASEAN. For the first ten ratifying countries, the trade pact took effect on 1 January 2022.
The RCEP includes a mix of high, middle, and low-income countries. It is expected to eliminate about 90% of the tariffs on imports between its signatories within 20 years of coming into force, and establish common rules for e-commerce, trade, and intellectual property. Several analysts predicted that it would offer significant economic gains for signatory nations, boost post-pandemic economic recovery, as well as "pull the economic centre of gravity back towards Asia, with China poised to take the lead in writing trade rules for the region," leaving the United States behind in economic and political affairs in the region. Reactions from others were neutral or negative, with some analysts saying that the economic gains from the trade deal would be modest. The RCEP was criticized by the Australian Institute of International Affairs, stating that it ignores labor, human rights, and environmental sustainability issues.
Regional Comprehensive Economic Partnership (RCEP)
Regional Comprehensive Economic Partnership (RCEP) is a proposed free trade agreement (FTA) between the ten member states of the Association of Southeast Asian Nations (ASEAN) (Brunei, Burma (Myanmar), Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand, Vietnam) and the six states with which ASEAN has existing FTAs (Australia, China, India, Japan, South Korea and New Zealand).
RCEP negotiations were formally launched in November 2012 at the ASEAN Summit in Cambodia. RCEP is viewed as an alternative to the Trans-Pacific Partnership trade agreement, which excludes China and India.
RCEP potentially includes more than 3 billion people or 45% of the world's population, and a combined GDP of about $21.3 trillion, accounting for about 40 percent of world trade.[4] The combined GDP of potential RCEP members surpassed the combined GDP of Trans-Pacific Partnership (TPP) members in 2007. Continued growth, particularly in China, India and Indonesia could see total GDP in RCEP grow to over $100 trillion by 2050, roughly double the project size of TPP economies
