The RCEP commercial pact will be launched from January 1, 2022; an initiative to ease trade barriers in Asia-Pacific regions
Update: Dec 31 2021 14:54 STI
Tokyo [Japan], December 31 (ANI): The pandemic has affected many countries and as a result they are joining hands and cooperating to revitalize their economies. One of these agreements is the Regional Comprehensive Economic Partnership (RCEP), an agreement aimed at easing and lowering trade barriers between most countries in the Asia-Pacific region. It has taken its final form and will take effect on January 1, 2022.
RCEP is a trade agreement that was introduced at the 19th ASEAN meeting in November 2011. However, talks started in 2012. It has been signed by several ASEAN and non-member countries. of ASEAN to promote trade in the Asia-Pacific region.
This deal is one of a kind for Japan as it concludes a mega trade deal with countries like China and South Korea. This deal is sure to be a major one for Japan, with the deal drastically reducing the tariffs the country pays on its exports.
Compared to 2019, Japan’s annual exports are expected to increase by about $ 20 billion, equivalent to an increase of about 5.5%, to other RCEP member countries.
RCEP consists of ASEAN – Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam – as well as Australia, China, Japan, New Zealand and Korea from South.
The Japanese government predicts that the nation will benefit from this deal. He estimates that Japan’s GDP will increase by 2.7% and generate 570,000 jobs.
Chief Cabinet Secretary Hirokazu Matsuno said in November: “This will contribute to the economic growth of Japan and the region. We will play a leading role in building a rules-based economic order and ensuring that participating nations play by the rules. “
According to the Xinhua Trade Agency, Chinese Premier Li Keqiang praised the trade agreement and hopes that if the RCEP comes into effect, it will strengthen international cooperation.
RCEP not only lowers tariffs among member countries, but also streamlines rules on investment, intellectual property and e-commerce. This contributes to smooth logistics and optimizes every step of the entire supply chain ecosystem.
Prices will be removed for many products. As for Japan, no tariff will be levied on 56% of agricultural products it imports from China, 49% of those from South Korea and 61% of products from ASEAN, Australia and New Zealand. Zealand.
Several categories of sensitive agricultural products have retained tariffs. Products include rice, beef and pork, wheat, dairy products and sugar, as well as tariffs on poultry and poultry products.
According to Kyodo News, Stephen Nagy, a senior associate professor of international relations in the Indo-Pacific at the International Christian University, said recent trade deals in the Asia-Pacific region would send a strong message to Washington to consider the economic framework in the region.
Besides RCEP, the Trans-Pacific Partnership is another agreement that the United States is not a party to. The Trans-Pacific Partnership is a trade pact that was signed to counter China’s growing influence in the region, but in 2017 Trump withdrew from the deal.
Currently, the TPP is a pact between 11 signatory countries aimed at promoting high levels of economic growth. Nations include Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.
Originally, the TPP was formulated to counter China’s growing influence in the region, but recently China, Britain and Taiwan have also applied to join the TPP.
âIf they are trying to work together to push and change the direction of China, then it has to be through the prism of development and trade, infrastructure and connectivity,â Nagy said. He also added that the US presence “will dilute China’s influence in the region.”
Nagy added that Japan would certainly like to push India to join the RPEC to counter China’s growing influence in the Asia-Pacific region. (ANI)