On 1 January 2022, the Regional Comprehensive Economic Partnership (RCEP) will come into force. This is undoubtedly a bright color in the context of the world economic recession and the shrinking international trade and investment. This free trade agreement, which covers the world's largest population, the largest economic and trade scale, and the most potential for development, is gradually penetrating into our production and life.
How big is this "circle of friends"?
The RCEP concept was first initiated by ASEAN in 2012, and after eight years and 31 rounds of formal negotiations, the agreement was signed on November 15, 2020, announcing the official launch of the world's largest free trade area.
The 15 member countries, including the 10 ASEAN countries and China, Japan, South Korea, Australia and New Zealand, have a total population of 2.27 billion, a GDP of 26 trillion US dollars, and a total export volume of 5.2 trillion US dollars, accounting for about 30% of the global total.
What is the significance of this "circle of friends"?
The official implementation of the RCEP has given people a glimpse of light and hope in the haze, showing that multilateralism and free trade still represent the right direction for the world economy and humanity.
The RCEP covers 20 chapters covering all aspects of trade and investment liberalization and facilitation. The number of zero-tariff products in trade in goods as a whole exceeds 90%, and the level of openness in trade in services and investment is significantly higher than that of the original bilateral free trade agreements between members. RCEP has significantly reduced the trade and investment costs of member countries, which will effectively promote intraregional trade and investment exchanges, greatly enhance the resilience of regional industrial chain supply chains, and help countries resist external economic turbulence and shocks.
On December 21, customers scanned payment codes at the "Smile Mall" physical store in Phnom Penh, the capital of Cambodia. Photo by Xinhua News Agency reporter Wu Changwei
The 15 member states are highly complementary, ranging from technology-leading countries such as Japan and South Korea to labor-intensive countries such as Vietnam and Cambodia. The addition of free trade relations between China, Japan and South Korea between important countries has significantly increased the degree of free trade in the region. If the RCEP regional partners can work closely together, they can form a fairly complete industrial chain and supply chain to further promote regional economic integration in Asia.
The implementation of the RCEP agreement is a new milestone in China's opening up to the outside world, providing strong support for the construction of a new development pattern, and will also effectively hedge the negative impact of the new crown pneumonia epidemic on the economy, boost trade and investment confidence, and inject new impetus into China's economic growth.
China has done a lot of work to finally enter into force.
"China took the lead in completing the approval of the agreement and submitting the approval letter, which played a positive role in promoting the acceleration of the completion of the approval and the arrival of the agreement on schedule." Vice Minister of Commerce Ren Hongbin said at the State Council's regular policy briefing on December 30 that at present, domestic preparations for the implementation of the agreement are ready, and 701 binding obligations are ready to be fulfilled.
Today, RCEP will take effect as scheduled.
For businesses, RCEP represents valuable market opportunities. Trade and investment facilitation is guaranteed by the system, the industrial chain supply chain is expected to be more integrated, regional investment is expected to be more active, and the road to opening up with mutual benefit, win-win cooperation and many opportunities is getting wider and wider.
This is a beauty instrument taken at the Korea booth in the national exhibition area of the National Convention Center of the Service Trade Fair on September 5. Photo by Xinhua News Agency reporter Wang Tiancong
For consumers, RCEP means richer, cheaper shopping options. Japanese home appliances, digital equipment, Thai fruits, Vietnamese shoes and clothing, Korean cosmetics... Zero tariff promises to reduce the cost of imported goods, trade facilitation allows goods to reach consumers faster, bringing consumers a better, affordable and convenient consumer experience.
New year, better expectations. Walk into the RCEP "circle of friends" together, are you ready? (Reporter Yan Fuyi)