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High hopes voiced as key trade pact takes effect

By LIU ZHIHUA | China Daily | Updated: 2022-01-04 07:19
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Leaders attend the fourth RCEP Summit, held via video link, on Nov 15, 2020. [Photo/Agencies]

Trade, investment boost

The region covered by the RCEP boasts a population of some 2.27 billion, about one-third the global total. Exports from RCEP members totaled $5.2 trillion in 2019, or 30 percent of those globally, according to China's Ministry of Commerce.

Signing the FTA has been widely viewed as a big step forward for regional economic integration and a victory for multilateralism and free trade.

According to analysts, the partnership will inject more positive energy into the world economy, which is facing numerous challenges, such as the lingering impact of the pandemic and rising anti-globalization sentiment.

Research by UNCTAD shows that the RCEP will have a significant impact on international trade, and during the pandemic, it can also promote trade resilience.

Cui Fan, a professor at the School of International Trade and Economics at the University of International Business and Economics, or UIBE, said, "By significantly improving market access and reducing costs, the RCEP will boost trade and investment."

According to a report by the Chinese Academy of International Trade and Economic Cooperation in Beijing, the RCEP will add about $857 billion worth of exports and $984 billion of imports to the region by 2035-respective growth of about 18.3 percent and 9.6 percent.

By 2035, it will increase regional combined GDP growth by 0.86 percent, and for the global economy, it will raise GDP by 0.12 percent and trade by 2.91 percent.

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