The world's largest free trade zone has entered a new stage of comprehensive implementation (Rui Finance) RCEP | Industry | Global

On June 2, 2023, the RCEP Regional Food Industry Expo opened at the Yantai International Expo Center in Shandong Province. This year's Expo has established a RCEP regional food industry economic and trade exchange platform to promote cooperation between China and RCEP members in the food industry, prefabricated food industry, and other fields, attracting thousands of enterprises from RCEP members to participate. The picture shows the audience learning about pre made food products at the meeting.

Tangke Photography

Since last year, Yuhuan City in Zhejiang Province has continuously strengthened its guidance for port enterprises, expanding cooperation between Damaiyu Port and Southeast Asian countries and RCEP countries. The picture shows a New Zealand cargo ship loaded with 6245 tons of new season kiwifruit docked at the container terminal of Damaiyu Port. This route is the RCEP national fruit import route successfully opened by Damaiyu Port last year, achieving a breakthrough in zero inbound fruit business.

Photo by Duan Junli

On June 2nd, the Regional Comprehensive Economic Partnership Agreement officially came into effect for the Philippines, marking the full entry into force of RCEP for the 10 ASEAN countries and 15 signatory countries including Australia, China, Japan, South Korea, and New Zealand. The Ministry of Commerce stated that the total population, GDP, and trade volume of goods in the RCEP region all account for about 30% of the world's total. The full entry into force of the agreement for 15 parties marks a new stage in the comprehensive implementation of the world's most populous, largest economic and trade scale, and most promising free trade zone.

The initial results have been evident since implementation

On November 15, 2020, the 10 ASEAN countries, along with Australia, China, Japan, South Korea, and New Zealand, jointly signed the RCEP and pushed for its official entry into force on January 1, 2022. The person in charge of the International Department of the Ministry of Commerce introduced that, with the joint efforts of all parties, the implementation of RCEP has achieved initial results——

The trade of goods between members is becoming closer, and intra regional trade has become a key force in stabilizing and driving the growth of foreign trade among members. Benefiting from the positive signals released by the effective implementation of RCEP, this region has continued to become a hot spot for global investment. The utilization of foreign investment by most members has shown a positive upward trend, and the overall attraction of green space investment in the region is strong.

The implementation of RCEP has played an important role in stabilizing foreign trade and foreign investment in China. From a trade perspective, in 2022, China's total import and export volume with other RCEP members reached 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. From January to April 2023, the total import and export volume of China with other RCEP members was 4.12 trillion yuan, a year-on-year increase of 7.3%, accounting for 30.9% of China's total foreign trade import and export volume. From the perspective of attracting foreign investment, in 2022, China's actual utilization of investment from other RCEP members reached 23.53 billion US dollars, a year-on-year increase of 23.1%. From January to April 2023, China's actual utilization of investment from other RCEP members reached nearly 8.9 billion US dollars, a year-on-year increase of over 13.7%.

RCEP brings tangible dividends and benefits to Chinese enterprises. The RCEP, combined with the bilateral free trade agreements already in effect between China and other RCEP members, has created favorable conditions for enterprises to better enjoy benefits and helped them reduce trade costs. In 2022, Chinese enterprises will enjoy a preferential export value of RMB 235.3 billion under RCEP, and can enjoy a tariff reduction of RMB 1.58 billion from the importing country; The import value of Xianghui is 65.3 billion yuan, with a tax reduction of 1.55 billion yuan. In the first quarter of 2023, Chinese enterprises enjoyed a preferential export value of 62.29 billion yuan under RCEP, and could enjoy a tariff reduction of 930 million yuan from the importing country; The import value of Xianghui is 18.25 billion yuan, with a tax reduction of 480 million yuan.

Promote the free flow of production factors within the region

With the official implementation of RCEP for the Philippines, China will mutually implement RCEP tariff reductions with the Philippines. According to the announcement issued by the Tariff Commission of the State Council, starting from June 2, 2023, the agreed tariff rates applicable to RCEP ASEAN member countries will be applied to some imported goods originating from the Philippines, and the subsequent annual tariff rates will be implemented from January 1 of that year.

"After RCEP officially takes effect in the Philippines, it is expected to save nearly one million yuan in import tariffs for our Philippine customers every year." said Wang Beibei, Import and Export Commissioner of Shandong Yingke Environmental Protection and Renewable Resources Co., Ltd., "This greatly enhances the competitiveness of our products in the Philippine market. Foreign customers are actively placing orders, and we have more confidence in the Southeast Asian market."

Industry insiders believe that the RCEP, including China and the Philippines, will fully enter into force for the 15 signatory countries, promoting the 15 parties to fulfill their commitments to openness in goods, services, and investment, and adding high-level rules in various fields. This will greatly promote the free flow of production factors such as raw materials, products, technology, talent, capital, information, and data in the region, promote the gradual formation of a more prosperous regional integration market, and promote member countries to open up and cooperate on a larger scale, at a higher level, and at a deeper level.

The head of the International Department of the Ministry of Commerce stated that the full implementation of RCEP has created more favorable conditions for China to expand goods trade with member countries, and will also drive corresponding service trade and investment openness, promote trade facilitation, and improve the business environment. Continuously promoting the high-quality implementation of RCEP will be beneficial for deepening the integration and development of regional industrial and supply chains, expanding new space for international economic and trade cooperation among local governments, industries, and enterprises, and promoting the achievement of higher-level institutional openness from a higher starting point.

Make good use of the policy dividends set by the Football Association

RCEP has become fully effective for all signatory countries. How can local governments, industries, and enterprises make good use of the policy dividends of the agreement?

"We will guide local governments to implement the" Guiding Opinions on High Quality Implementation of RCEP ", grasp the gradual opening process of RCEP, and gradually fully leverage the economic effects of the agreement." The head of the International Department of the Ministry of Commerce said that we will further strengthen the RCEP special training, focusing on specific industries such as petrochemical, electromechanical, light textile, and automotive to deepen the RCEP stable chain and fixed chain special training on the basis of 13 training sessions held in the past two years. Encourage local governments and industries to carry out more refined and targeted training, helping enterprises fully understand and make good use of the benefits of the agreement policies.

Since the implementation of RCEP, many places have taken many innovative measures and achievements, including implementing RCEP trade facilitation measures with high standards, promoting the implementation of 6-hour customs clearance for fast transportation and perishable goods; Actively building an online RCEP intelligent application public service platform, vigorously promoting the full process digital service of origin certificates, and helping enterprises to enjoy benefits efficiently; Expand and increase foreign trade liners, air freight routes, railway freight trains and stations targeting RCEP members, and enhance port clearance efficiency and traffic capacity.

The above person in charge stated that the next step will be to summarize the good experiences and practices of various regions in docking with RCEP, optimizing the business environment, promoting trade and investment cooperation, and forming replicable, promotable, and implementable classic cases of utilizing RCEP, continuously improving the utilization rate and level of the agreement. At the same time, based on the optimization of the functions of the China Free Trade Zone Service Network in the early stage, we will continue to provide RCEP policy consultation and Q&A services for enterprises. Actively promote the coordination and docking of product and service standard regulations among members, pragmatically promote regional mutual recognition and cooperation in qualification assessment, create better conditions for the high-quality implementation of RCEP, drive local and enterprise integration into the RCEP market more fully, and achieve mutual benefit and common development at a higher level.

Our reporter Qiu Haifeng's Overseas Edition of People's Daily