Many ASEAN countries look forward to RCEP dividends The Regional Comprehensive Economic Partnership Agreement (RCEP) came into effect on the 1st, and its dividends are highly anticipated by ASEAN countries. Some people in ASEAN countries believe that the launch of the world`s largest free trade area will bring tangible benefits to domestic enterprises, and will significantly boost the economies of ASEAN countries and accelerate the process of ASEAN economic integration.
The Ministry of Commerce of Cambodia, the rotating chairmanship of ASEAN in 2022, predicts that Cambodian agricultural products and industrial products will enjoy preferential tariff treatment under the RCEP framework. RCEP can promote Cambodia's gross domestic product (GDP) growth by about two percentage points, with exports and investment increasing by 7.3% and 23.4% respectively.
"Participating in RCEP will bring more benefits and opportunities to Cambodia, which will help Cambodia to get rid of its status as a least developed country and promote rapid economic upgrading." Cambodian Ministry of Commerce spokesperson Bin Sovij said.
According to the "Cumulative Rules of Origin" in the RCEP, as long as the value-added part of the product in the processing process belongs to 15 member states, and the cumulative value-added exceeds 40%, you can enjoy the corresponding tariff preferences. Analysts believe that this will make the circulation of regional production resources more efficient and smooth, and further promote the process of regional economic integration.
Zhao Bin, President of Thai-Chinese Rayong Industrial Park Development Co., Ltd., said that many export-oriented companies in Thailand import raw materials and parts from RCEP member countries. The accumulation of origin rules allows companies to enjoy more and more preferential tax policies, which helps them. Expand business in the region.
Since the 1st, RCEP has officially entered into force for 10 countries including Brunei, Cambodia, Laos, Singapore, Thailand, Vietnam, China, Japan, New Zealand and Australia. South Korea will join the effective implementation on February 1. The remaining member states will also take effect one after another after completing the domestic approval procedures.
Philippine Secretary of Trade and Industry Ramon Lopez recently urged the Senate to approve RCEP as soon as possible, believing that joining this agreement is essential to the recovery of the Philippines` economy. He believes that the delay in joining RCEP is not conducive to attracting foreign investment in the Philippines and will slow down the country's economic growth.
According to data from the Philippine Ministry of Trade and Industry, in 2020, 51% of Philippine exports, 68% of imports, and 58% of foreign direct investment involve RCEP members. After joining RCEP, the country's exports of fruits, seafood, clothing, and paper to East Asian countries such as China, Japan, and South Korea will benefit significantly.
2022 01/05