On June 2, the "Regional Comprehensive Economic Partnership Agreement" (RCEP) officially entered into force for the Philippines, marking the full entry into force of RCEP for the 10 ASEAN countries and 15 signatories including Australia, China, Japan, South Korea, and New Zealand. According to the Ministry of Commerce, the total population, total GDP, and value of trade in goods in the RCEP region account for about 30% of the world's total. A new phase of implementation.
Preliminary results have been shown since the implementation
On November 15, 2020, the 10 ASEAN countries, Australia, China, Japan, South Korea, and New Zealand jointly signed RCEP, and promoted the agreement to come into effect on January 1, 2022. According to the person in charge of the International Department of the Ministry of Commerce, with the joint efforts of all parties, since the implementation of RCEP, the initial results have appeared——
The trade in goods among the members has become closer, and intra-regional trade has become a key force for stabilizing and stimulating the growth of foreign trade of the members. Benefiting from the positive signals released by the effective implementation of RCEP, this region continues to become a hot spot for global investment. Most of the members' utilization of foreign capital shows a positive upward trend, and the region as a whole attracts strong growth in greenfield investment.
The implementation of RCEP has played an important role in stabilizing my country's foreign trade and foreign investment. From the perspective of trade, in 2022, the total import and export volume between my country and other RCEP members will be 12.95 trillion yuan, a year-on-year increase of 7.5%, accounting for 30.8% of my country's total foreign trade import and export. From January to April 2023, the total import and export volume between my country and other RCEP members was 4.12 trillion yuan, a year-on-year increase of 7.3%, accounting for 30.9% of my country's total foreign trade import and export. From the perspective of attracting foreign capital, in 2022, my country's actual investment from other RCEP members will be US$23.53 billion, a year-on-year increase of 23.1%. From January to April 2023, my country actually utilized nearly US$8.9 billion in investment from other RCEP members, a year-on-year increase of more than 13.7%.
RCEP has brought real dividends and benefits to the vast number of enterprises in our country. RCEP is superimposed on the bilateral free trade agreements that have taken effect between my country and other RCEP members, creating good conditions for enterprises to enjoy better benefits and helping enterprises reduce trade costs. In 2022, under RCEP, Chinese enterprises can enjoy export value of 235.3 billion yuan, and enjoy tariff reduction of 1.58 billion yuan from the importing country; enjoy import value of 65.3 billion yuan, and tax reduction of 1.55 billion yuan. In the first quarter of 2023, Chinese enterprises enjoy export value of 62.29 billion yuan under RCEP, and can enjoy tariff reduction of 930 million yuan from the importing country; enjoy import value of 18.25 billion yuan, and tax reduction of 480 million yuan.
Promote the free flow of factors of production within the region
As RCEP comes into force for the Philippines, China and the Philippines will mutually implement RCEP tariff concessions. According to the announcement issued by the Customs Tariff Commission of the State Council, from June 2, 2023, some imported goods originating in the Philippines will implement the agreed tax rates applicable to RCEP ASEAN member states, and the subsequent annual tax rates will be implemented from January 1 of that year.
"After RCEP comes into force for the Philippines, it is expected to save nearly one million yuan in import duties for our Philippine customers every year." said Wang Beibei, import and export commissioner of Shandong Yingke Environmental Renewable Resources Co., Ltd., "This has greatly improved the market share of our products in the Philippines. The competitiveness of the company, foreign customers are actively placing orders, and we have more confidence in the Southeast Asian market.”
Industry insiders believe that, including China and the Philippines, RCEP will take full effect for the 15 signatory countries, and promote the 15 parties to fulfill their opening commitments in goods, services and investment, and superimpose high-level rules in various fields, which will greatly promote the development of raw materials in the region. The free flow of production factors such as products, technology, talents, capital, information and data will promote the gradual formation of a more prosperous regional integrated market, and promote wider, higher-level and deeper open cooperation among member states.
The person in charge of the International Department of the Ministry of Commerce said that the full entry into force of RCEP has created more favorable conditions for my country to expand trade in goods with member parties, and will also drive corresponding service trade and investment opening up, and promote trade facilitation and the improvement of the business environment. Continuing to promote the high-quality implementation of RCEP will help further promote the integrated development of regional industrial and supply chains, help localities, industries and enterprises expand new space for international economic and trade cooperation, and help promote the realization of a higher level of institutional opening from a higher starting point.
Make good use of the policy bonus of the agreement
RCEP has come into full effect for all signatory countries. How can localities, industries and enterprises make good use of the policy dividends of the agreement?