■ Xinhua
The regional comprehensive economic partnership agreement (RCEP) came into force on January 1, and its dividends are expected by ASEAN countries. Some people from ASEAN countries believe that the departure of the world’s largest free trade area will bring tangible benefits to their enterprises, significantly boost the economies of ASEAN countries and accelerate the process of ASEAN economic integration.
In 2022, the Cambodian Ministry of Commerce, the rotating chairman of ASEAN, expects that Cambodia’s Shenzhen Agricultural Products Group Co.Ltd(000061) and industrial products will enjoy preferential tariff treatment under the framework of RCEP. RCEP can promote the gross domestic product (GDP) of Cambodia and China to grow by about two percentage points, and the export and investment will grow by 7.3% and 23.4% respectively.
“Participation in RCEP will bring more benefits and opportunities to Cambodia, help Cambodia get rid of its status as a least developed country and promote economic acceleration and upgrading.” Cambodian Ministry of Commerce spokesman binsowiji said.
Somsalan, President of Cambodian rice Association, said that RCEP has provided greater market access for Cambodian products, will attract more investment and advanced technology for Cambodian rice processing and other fields, and further promote exports, which are very important to Cambodia’s economic development.
He Enjia, President of Cambodia China Textile Industry Association, said that RCEP has improved the competitiveness of Cambodia’s textile and garment industry in many aspects. On the one hand, the tariff reduction and exemption of imported accessories by garment factories will help to reduce enterprise costs. On the other hand, RCEP helps to attract more foreign enterprises to invest in Cambodia, bring better technology, improve production efficiency, enrich product structure, and contribute to the sustainable development and growth of enterprises.
According to the “cumulative rules of origin” in RCEP, as long as the value-added part of the products in the processing process belongs to 15 member states and the cumulative value-added exceeds 40%, they can enjoy the corresponding tariff preference. 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 Thailand China Rayong Industrial Park Development Co., Ltd., said that many export-oriented enterprises in Thailand imported raw materials and parts from RCEP member countries. The rules of origin accumulation allow enterprises to enjoy more and more preferential tax policies, which helps them expand their business in the region.
Cai Weicai, senior vice president of Kaitai Bank of Thailand, said that as an important regional manufacturing center, more than 39% of Thailand’s exports to East Asia are intermediate products. RCEP will further promote the export of Thai intermediate products and establish a closer supply chain with East Asia.
KPMG’s report shows that the trade volume between Thailand and other RCEP member countries accounts for more than half of the country’s total trade. The entry into force of the agreement will significantly boost Thailand’s trade advantageous industries, such as automobile and parts production, plastic and petrochemical products and electronic products.
Since January 1, RCEP has officially entered into force for Brunei, Cambodia, Laos, Singapore, Thailand, Vietnam, China, Japan, New Zealand and Australia. South Korea will join the implementation on February 1. The remaining member states will also come into force after completing China’s ratification procedures.
Philippine Minister of trade and industry Ramon Lopez recently urged the Senate to approve RCEP as soon as possible, believing that joining this agreement is crucial to the economic recovery of the Philippines. He believes that the delay in joining RCEP is not conducive to the Philippines attracting foreign investment and will slow down the country’s economic growth.
According to the data of the Philippine Ministry of trade and industry, in 2020, 51% of Philippine exports, 68% of imports and 58% of foreign direct investment involved RCEP member countries. After joining RCEP, the country’s exports of fruits, seafood, clothing and paper to China, Japan, South Korea and other East Asian countries will benefit significantly.
(International Business Daily)
