Media Review: RCEP's Full Effectiveness Will Revitalize Asia Pacific Economic Enterprises | Philippines | Economy
According to Taiwan's Economic Daily on June 3rd, RCEP will officially enter into force for the Philippines from June 2nd, which means that all 15 signatory countries have completed the effective procedures.
In 2022, multiple members achieved year-on-year growth in intermediate goods trade within the RCEP region. Among them, New Zealand, Malaysia, Indonesia, and the Philippines all saw a growth rate of over 10% in intermediate goods trade within the RCEP region; The growth rate of intermediate goods trade between Japan, New Zealand, Malaysia, Indonesia, and the Philippines in the RCEP region exceeds that of global intermediate goods trade.
Now, all 15 members of RCEP are in place, and all walks of life assess that RCEP has entered a new milestone after its full entry into force, which will revitalize the economy of the Asia Pacific region frustrated by trade conflicts and the COVID-19, promote the opening of the markets of China, Japan and South Korea, and open a new era of economic integration between Northeast Asia and Southeast Asia. In the future, it is expected that economic cooperation between ASEAN and China, Japan, and South Korea will deepen.
According to a report on the website of Deutsche Welle Radio on June 2nd, RCEP is a free trade agreement initiated by the ten ASEAN countries and jointly participated by China, Japan, South Korea, Australia, and New Zealand, consisting of a total of 15 signatory countries. The total population, GDP, and trade volume of goods in its region all account for about 30% of the global total.
After the RCEP takes effect, tariff reductions among members include different commitments such as immediate reduction to zero tariffs and reduction to zero tariffs within 10 years. Ultimately, over 90% of goods trade within the region will achieve zero tariffs, forming the world's most populous and largest free trade zone in terms of economic and trade scale.
With the official entry into force of RCEP for the Philippines on June 2nd, all 15 signatory countries have completed the entry into force process.
The Chinese Ministry of Commerce stated that the full implementation of RCEP fully reflects the determination and actions of the 15 parties to support an open, free, fair, inclusive, and rule-based multilateral trading system. It will inject strong impetus into regional economic integration and comprehensively enhance the level of trade and investment liberalization and facilitation in East Asia.
The relevant person in charge of the department stated that the implementation of RCEP has also played an important role in stabilizing China's foreign trade and foreign investment, bringing dividends and benefits to a large number of enterprises.
According to statistics, in 2022, the total import and export volume between China and other RCEP members was RMB 12.95 trillion, a year-on-year increase of 7.5%, accounting for 30.8% of China's total foreign trade import and export volume; China's actual utilization of investment from other RCEP members reached 23.53 billion US dollars, a year-on-year increase of 23.1%.
According to a report by Philippine News Agency on June 2nd, the Regional Comprehensive Economic Partnership Agreement finally came into effect for the Philippines on June 2nd, more than two years after the signing of the free trade agreement by all parties in November 2020.
The Philippine Ministry of Trade and Industry, responsible for RCEP negotiations, urges Filipino companies to fully utilize this new free trade agreement.
"RCEP brings great hope to the Philippines in expanding our trade with RCEP partners," said Alfredo Pasqual, Minister of Trade and Industry
Pasqual said that his office will actively promote the benefits that RCEP can bring to Philippine businesses, especially small and medium-sized enterprises.
He also said, "I urge, encourage, and demand that Philippine companies fully utilize the potential benefits brought by RCEP."
Pasqual said that RCEP will help Filipino small and medium-sized enterprises better integrate into the global value chain and trade with other countries at lower or zero tariffs.
The Philippines is the last among the 15 signatory countries of RCEP to complete the effective procedures.