RCEP injects new impetus into regional economic development

Earlier this year, the Regional Comprehensive Economic Partnership (RCEP) entered into force for Indonesia. So far, the number of effective member states of the world's largest free trade agreement has increased to 14. Analysts believe that since RCEP came into effect on January 1, 2022, it has significantly reduced the cost of trade in goods among member states, effectively promoted the deep integration of regional industrial chain supply chain value chains, greatly boosted confidence in regional economic recovery, and provided a boost for the region and the world. New impetus was injected into the growth of trade and investment.

Significant growth in trade among member states

RCEP covers all aspects of trade and investment liberalization and facilitation. Its effective implementation has effectively promoted economic and trade cooperation among member states and regional economic integration, and brought new opportunities for economic, trade and financial cooperation in the Asia-Pacific region.

The machine is running at high speed and the production line is running at full capacity. In the production workshop of Halma (Thailand) Co., Ltd. (hereinafter referred to as "Halma Company") located in Thailand's "Eastern Economic Corridor", workers are stepping up the production of automobile tire molds that are sold around the world. Halma's suppliers come from countries such as China, Japan and South Korea. Over the past year, the customs clearance efficiency of purchasing raw materials has been significantly improved, and the company's sales profits in the international market have continued to grow.

Also benefiting from RCEP is Great Wall Motors Rayong Plant in Thailand. In the assembly workshop of the factory, two Thai boys skillfully installed the engine for the car following the guidance of the mechanical arm (see picture, photo by our reporter Zhang Niansheng). "After RCEP came into effect, it will be more convenient to import auto parts to Thailand, and the company's production capacity and efficiency will continue to improve. We are more confident in our future development." Zhang Jiaming, President of Great Wall Motor ASEAN Region, said.

According to statistics from Thailand Customs, after RCEP came into effect, 39,000 Thai products have received preferential tariffs, of which 29,000 have achieved zero tariffs. The customs clearance time for some fresh products has been shortened from the previous 48 hours to 6 hours. Oramon, director of the Trade Negotiation Department of the Ministry of Commerce of Thailand, said that the total value of imports and exports between Thailand and RCEP member countries exceeds 50% of Thailand's total foreign trade. The effective implementation of RCEP has a significant boost to trade between Thailand and other member countries. In the field of investment, the market and consumer groups covered by RCEP are very large. "The huge market will attract more foreign investment from RCEP member countries."

According to data released by the Ministry of Commerce of Cambodia, in the first half of 2022, the country's exports to RCEP member countries reached US$3.28 billion, an increase of nearly 10% over the same period of the previous year. Deputy State Secretary and Spokesperson of the Ministry of Commerce of Cambodia, Bin Soviji, emphasized that RCEP and the Cambodia-China Free Trade Agreement are important factors to promote the growth of Cambodia’s exports. "Benefiting from RCEP, we have more products entering other member countries and opening up a larger market. In the long run, these two free trade agreements will continue to provide assistance to Cambodia's economic growth."

Vietnam's aquatic product exports also rose sharply due to RCEP. At present, Vietnam exports aquatic products to more than 160 markets around the world, among which exports to RCEP member countries account for more than 63% of the total exports. In the first 10 months of 2022, Vietnam's aquatic product exports will reach US$9.5 billion, a year-on-year increase of 34%. Ruan Hongyan, Minister of Industry and Trade of Vietnam, said that the implementation of relevant RCEP rules and other preferential measures will promote the diversification and optimization of raw material supply for Vietnamese enterprises, help improve productivity, product quality and competitiveness, expand new supply chains, and promote international trade and economic growth.

Gu Qingyang, an associate professor at the Lee Kuan Yew School of Public Policy at the National University of Singapore, said that there are strong industrial complementarities among RCEP member countries, and the cumulative rules of origin determined by RCEP make the layout of related industries more flexible in compliance with the principle of efficiency, which will effectively promote cooperation among member countries. Industrial chain supply chain integration. The growth of direct investment among RCEP member countries reflects the growing momentum of industrial chain integration in the region, and is also very attractive to economies outside the region, attracting more and more global investment.

Enjoy continuous release of bonus

On March 18 last year, RCEP came into effect for Malaysia. On the same day, Beijing Futian International Trade Co., Ltd. became the first enterprise in Beijing to enjoy Malaysia's tax incentives under the RCEP framework. The tariff rate for 24 trucks exported to Malaysia was reduced from 30% to 5%, with an average tax reduction of about 40,000 yuan per truck. RMB, the competitiveness of exports has been greatly improved.

As an important participant in regional economic cooperation, China implements RCEP with high quality. The Ministry of Commerce of China jointly issued the "Guiding Opinions on the High-quality Implementation of the Regional Comprehensive Economic Partnership Agreement (RCEP)" and organized a series of special trainings on RCEP; local customs continue to optimize the certificate of origin visa model and supervision process; national market supervision The General Administration has established fixed and standardized information exchange channels with many RCEP member countries... China has joined hands with all parties to promote regional economic integration and continue to create new advantages in cooperation and competition. According to statistics from the General Administration of Customs of China, the total import and export volume between China and RCEP trading partners will reach 12.95 trillion yuan in 2022, a year-on-year increase of 7.5%, accounting for 30.8% of China's total foreign trade.

Greenspan, Secretary-General of the United Nations Conference on Trade and Development, said that in the context of declining global openness, rising trade costs and supply chain bottlenecks, RCEP has made positive contributions to the development of the world economy. China is playing an increasingly important role in promoting global openness and cooperation and maintaining the multilateral trading system.

China's Ministry of Commerce stated that it will use RCEP as a new starting point to negotiate and sign free trade agreements with more trading partners, expand the network of high-standard free trade areas facing the world; further improve the level of opening up of trade in goods, trade in services and investment markets, and actively participate in digital Negotiations on new rule issues such as economy and environmental protection, steadily expanding the opening up of rules, regulations, management, standards, etc., better serve the construction of a new development pattern, and promote high-quality development.

"China plays an important role in RCEP and is also the main export destination of other RCEP member countries. The stronger growth of China's economy in the future will bring more room for RCEP to develop," Gu Qingyang said.

Helping the Regional Economic Recovery

In 2022, China's import and export growth rate to other RCEP member countries will exceed double digits. Among them, the growth rate of imports and exports to Indonesia, Singapore, Myanmar, Cambodia, and Laos will exceed 20%. Analysts pointed out that RCEP has realized the coordination of economic and trade rules in the region, accelerated the integration of regional industrial and supply chains, provided assistance for the further deepening of economic and trade relations between China and ASEAN, and provided strong momentum for regional economic development.

"Golden Pillow Durian is very popular in China, and it is also the main variety we grow." Chava, who runs a durian garden in Rayong Province, Thailand, said that since 2022, the time and cost of Thai companies' agricultural products export to China have been greatly reduced. From the "Durian Express" to the export of cassava, rice, rubber, etc., the trade between Thailand and China continues to grow. "We will expand the durian planting area and sell more high-quality and cheap Thai fruits to the Chinese market." Chawa is full of longing for the future.

Hu Yishan, chief consultant of the Malaysian Pacific Research Center, said that for Southeast Asian countries, RCEP has played an important role in further eliminating intra-regional trade barriers.

Vietnamese media analysts believe that the effective implementation of RCEP has established a binding legal framework for the ASEAN region in the fields of trade, investment, intellectual property rights, and e-commerce, creating a more level playing field.

Cambodian Minister of Commerce Pan Sousa said that in the context of rising global uncertainties, rising protectionism and other factors have had an adverse impact on the global economy. RCEP not only promotes the recovery of regional economic and trade growth, but also provides space for strengthening policy coordination among relevant participants.

Zhang Jinxiong, Chairman of the Indonesian Chinese Entrepreneur Association believes that RCEP integrates funds, resources, professional technology and services to form a complete cycle of regional economic cooperation. At present, the global economic growth momentum is insufficient. The implementation of RCEP has provided stability and order for the promotion of economic and trade development, and will promote the sustainable development of the regional economy.

In an interview with our reporter, former deputy prime minister of Thailand and president of the Thailand-China Friendship Association, Kon Thaparansi said that the entry into force of RCEP will help promote investment facilitation and drive the development of related industries in countries in the region. More enterprises, especially small and medium-sized enterprises Therefore, it benefits, which effectively promotes the economic development of Thailand and other ASEAN countries. "The further implementation of the rules of RCEP will produce more obvious positive effects and help the Asia-Pacific economic integration process move forward."