From January 1 2022, the Regional Comprehensive Economic Partnership, or RCEP, will come into effect for China, Japan, Australia, New Zealand and six ASEAN member states. It will be the largest economic zone in the world. But after the agreement takes effect, what tangible benefits will it bring to the people of all these countries ?
From January 1, it will come into effect for 10 member states including China. As the largest free trade zone in the world, RCEP covers a population of about 2.3 billion with a combined GDP of over US$26 trillions ! According to statistics, by 2030, RCEP is expected to drive a net increase of 519 billion U.S. dollars in exports of member countries and a net increase of 186 billion U.S. dollars in national income.
RCEP is not only a super economic circle, but also a life circle that benefits the people of all countries. After the RCEP agreement comes into effect, more than 90% of the trade in goods among the approved members will eventually achieve zero tariffs.
Faster, Better
For many countries, zero tariffs not only mean an increase in trade volume, but also mean that ordinary people can buy more high-quality and cheap goods. At the same time, in addition to price, speed is also a key word. Faster speed means that some goods can enter ordinary people’s homes in better condition. When the customs clearance speed is improved, everyone can get the goods faster, and the quality of the goods can be better guaranteed, and this time is also the time for some e-commerce companies to show their strength again. At the same time, we will also see that RCEP will bring about the aggregation effect of the industrial chain and supply chain.
In addition, the China-Cambodia Free Trade Agreement will take effect on January 1, 2022 and implement tax reduction. From July 1, 2022, China will also implement the seventh step of reducing the most-favored-nation tax rate for 62 information technology products.
Upgrading everywhere by and for people
Including the upgraded version of the China-ASEAN Free Trade Agreement, the bilateral free trade agreement between China and Cambodia, and the economic cooperation framework agreement signed between China, Central Asia and Russia, these agreements will be better implemented in 2022.
Open and inclusive cooperation
First of all, what everyone will see is that China will once again emphasize inclusive rather than exclusive cooperation. From RCEP itself, we can see that everyone can join a common cooperation process and jointly make the cake bigger. Therefore, in the face of the relationship between China and its neighbors in 2022, we can see many important opportunities for cooperation, and there is also a positive willingness among countries to meet each other halfway.
