May 17, 2023
BEIJING – The Regional Comprehensive Economic Partnership, the largest global free trade agreement, will soon enter into effect across the board as its last member economy submitted its ratification, which experts said will help navigate uncertainties and boost global trade.
The Philippines, as the last member country to deposit its instrument of ratification recently, will see the agreement enter into force on June 2, according to a news release published by the Association of Southeast Asian Nations Secretariat.
To facilitate the full implementation of the RCEP, China will earnestly honor the commitments laid out in the agreement, according to a notice circulated Monday by the Customs Tariff Commission of the State Council.
Starting June 2, China will levy the conventional tariff rates pledged under the RCEP for ASEAN member countries on some goods originating from the Philippines, the notice said, adding that the future conventional tariff rates will be implemented on an annual basis from Jan 1.
The RCEP was signed by 15 Asia-Pacific countries on Nov 15, 2020 and its signatories include the 10 ASEAN members, China, Australia, Japan, New Zealand and South Korea.
With the RCEP scheduled to be in force in the Philippines, all 15 member states are set to complete their due procedures for implementation and exercise tariff concessions, which will soon bring in the agreement’s complete implementation.
According to World Bank data, the agreement covers 2.3 billion people or 30 percent of the world’s population, contributes $25.8 trillion or about 30 percent of global GDP, and accounts for $12.7 trillion, or over a quarter of global trade in goods and services.
Zhang Jianping, head of the center for regional economic cooperation at the Chinese Academy of International Trade and Economic Cooperation, said the agreement will deliver such benefits as lower trade barriers, improved market access, more streamlined Customs-related procedures, and tariff concessions from trading partners.
The RCEP is of great significance for participating countries to jointly tackle the uncertainties in the international landscape, increase intra-regional trade and investment, stabilize industrial and supply chains and enhance people’s well-being, Zhang said.