Xinhua News Agency report of January 1 from Beijing (by staff reporters Liu Hongxia and Yu Jiaxin) - In the early morning of January 1, 2022, staff at the Beijing Customs Tariff Department were busy issuing certificates of origin for enterprises. On this day, the Regional Comprehensive Economic Partnership Agreement (RCEP) came into effect, and the world's largest free trade zone officially set sail.
RCEP currently has 15 member countries, including 5 countries of China, Japan, South Korea, Australia, New Zealand, and 10 ASEAN countries. Looking at the three aspects of population size, economy volume, and total trade, they all account for about 30% of the global total.
According to the provisions of the agreement, 6 ASEAN member countries and 3 non-ASEAN member countries formally submit approval letters, which means the threshold for entry into force of the agreement has been reached. Through the efforts of all parties, RCEP reached the entry into force threshold on November 2, 2021. On January 1, RCEP officially entered into force for the 10 countries of Brunei, Cambodia, Laos, Singapore, Thailand, Vietnam, China, Japan, New Zealand and Australia. The Republic of Korea will join the effective implementation on February 1. The remaining member states will also enter into force and implement them one after another after completing domestic approval procedures.
Relevant officials of the Ministry of Commerce said that China will fully and fully implement its RCEP obligations, implement the agreement with high quality, and guide localities, industries and enterprises to better grasp the market opening opportunities brought by RCEP. China will also work with RCEP members to actively participate and support the construction of the RCEP mechanism, making it the main platform for East Asian economic and trade cooperation.
After RCEP comes into effect, more than 90% of goods trade between approved member countries will eventually achieve zero tariffs. On the day the agreement comes into effect, the immediate zero tariff ratio between China and ASEAN, Australia, and New Zealand will exceed 65%. China and Japan have newly established a free trade relationship, and the mutual immediate zero tariff ratio will reach 25% and 57%, respectively.
It's not just about lowering tariffs. RCEP will also form uniform rules on rules of origin, customs procedures, inspection and quarantine, etc., and the degree of trade facilitation within the region will be further enhanced.
In addition to trade in goods, RCEP member countries have also promised a high level of openness in trade in services, investment, etc., and have established high-level rules such as intellectual property rights and e-commerce. The flow of various economic factors will be smoother, and the regional industrial chain, supply chain and value chain will be further consolidated and developed.
The entry into force of RCEP as scheduled fully demonstrates the confidence and determination of all parties to jointly safeguard multilateralism and free trade and promote regional economic integration. It will make an important contribution to regional and global trade and investment growth, economic recovery and prosperity. (End)
Source of this article: Xinhua News Agency, original title “RCEP takes effect! The world's largest free trade zone officially sets sail》