China has completed all preparations for the full implementation of the Regional Comprehensive Economic Partnership (RCEP), the Ministry of Commerce (MOFCOM) said on Saturday. The effect of the trade pact sends a strong rebuke to those who seek unilateralism and trade protectionism, the ministry said.
China has completed all the necessary plans for the implementation of the committed tariff reductions, adjustments to the rules of origin of goods and updates of the software system to the customs authorities to ensure smooth tariff reductions, a said Yu Benlin, director general of the Department of International Trade and Economic Affairs. with MOFCOM.
A total of 166,000 Chinese entrepreneurs, trade and customs officers and related personnel have completed RCEP training through more than 600 training sessions and online training courses.
The RCEP is designed to eliminate up to 90% of tariffs on goods traded between signatories within 10 years of the agreement coming into force. The pact is expected to significantly boost trade and promote wider access to financial services, transport and tourism markets, Yu said. Negative list commitments and investor protection will dramatically improve quality.
MOFCOM and other responsible authorities have completed preparations for the implementation of all 701 binding obligations involving China under the RCEP.
China will be able to fully meet its obligations when the agreement enters into force on January 1, 2022, Yu said.
On the eve of the opening ceremony of the 4th China International Import Exhibition (CIIE) – the world’s largest import fair – MOFCOM said in a late statement on Nov. 3 that after 10 members have deposited the instrument of ratification with the Secretary of ASEAN-General, the RCEP, the world’s largest trade pact, will enter into force on January 1, 2022 as agreed.
The entry into force of RCEP will stabilize and further stimulate industrial and supply chains, preserve free trade and connectivity, and consolidate the recovery of the global economy from the pandemic, Yu said. The joint work RCEP members to activate the pact sends a strong signal to supporters of unilateralism and trade protectionism. He also highlighted support for free trade and multilateralism.
While continuing to promote the export of its competitive products, China will actively increase the import of advanced technologies, vital equipment and key parts, Yu said.
The RCEP was officially signed on November 15, 2020.
It features the largest participating population, the most diverse membership structure and the greatest potential for economic development globally.
Its 15 member countries have a total population of $ 2.27 billion and a total GDP of $ 26 trillion. Their combined exports amount to $ 5.2 trillion, which is about 30% of total world economic output.
RCEP has huge market potential and will vigorously drive regional and global growth, Yu said.
RCEP is expected to generate a net increase of $ 519 billion in exports and $ 186 billion in national income for its members each year by 2030, according to an estimate released by the Peterson Institute for International Economics.
RCEP members to lower tariffs, open markets and reduce barriers will significantly boost the flow of goods, technology, services, personnel and capital.
Previous estimates have also shown that removing tariff and non-tariff barriers alone under the RCEP would increase Asia-Pacific’s GDP by 2.1% and global GDP by 1.4%.
The Japanese government estimates that RCEP will increase Japanese GDP by around 2.7 percentage points, according to a Nikkei report this week.