On November 15, 2021, 15 trade (commerce) ministers from the 10 ASEAN countries and the 5 dialogue member states of China, Japan, South Korea, Australia, and New Zealand signed the world’s largest free trade arrangement-“Regional Comprehensive Economic Partnership Agreement (RCEP).
RCEP aims to achieve open, inclusive, rule-based trade and investment arrangements by reducing tariffs and non-tariff barriers, and establish a free trade agreement with a unified market. After the RCEP is signed, each member state will speed up their domestic approval procedures, which are expected to take effect on January 1, 2022.
RCEP was initiated by 10 ASEAN countries and invited China, Japan, South Korea, Australia, New Zealand and India to participate. The goal is to reach a modern, comprehensive, high-quality, and mutually beneficial new free trade agreement to promote trade and investment liberalization and facilitation.
RCEP hopes to form a unified rules system within the region, reduce operating costs, and reduce uncertain risks in operations. Tariff reduction among members is based on the commitment to immediately reduce tariffs to zero tariffs and to reduce tariffs to zero tariffs within 10 years.
Through RCEP, a new free trade relationship between China, Japan, and South Korea has been added. This is the first time that China has reached a free trade agreement with Japan, and it is also the first time that Japan and South Korea have reached a free trade agreement. The commitment to open markets to each other and lower tariffs and non-tariff barriers.
The signing of the RCEP agreement will greatly promote the import and export trade of Southeast Asian countries. Also in the clock field. Take step, to enjoy the benefit through it.