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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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A Japanese diplomat (right) learns about an environmental project at the 18th China-ASEAN Expo in Nanning in September. [Photo by Peng Huan/For China Daily]

Wei Jianguo, vice-chairman of the China Center for International Economic Exchanges, which is based in Beijing, said the RCEP free trade bloc will become the most diversified economic grouping in the world, with its members currently at various stages of development, following different political systems and having diverse social structures.

Up to 90 percent of the goods traded in the bloc will become tariff-free within 20 years, with many tariffs abolished immediately the agreement comes into effect.

To enjoy lower or zero tariffs, the RCEP's new rules of origin allow for products to have just 40 percent of their value added within the region. Rules of origin in a free trade area, or FTA, determine if a product originates from a member, so that related provisions can be applied.

In addition, while FTAs among countries in the RCEP mainly cover trade in goods, the partnership agreement extends to trade in services, investment and alignment of members' domestic rules with the agreement.

Wei said, "The RCEP is expected to help members build mutually beneficial industrial and supply chain partnerships, as well as stabilize these chains."

He added that the agreement can significantly lower trade costs in the region, enhance the competitiveness of products, create more business opportunities for enterprises, and provide additional choices and benefits for consumers.

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