The entry into force of the Regional Comprehensive Economic Partnership, RCEP Agreement will pave the way for the creation of a free trade area that covers 2 point 3 billion people or 30 per cent of the world’s population. It will also contributes 25 point 8 trillion US dollars or about 30 per cent of global Gross Domestic Product, GDP. The Agreement enters into force, 1st of January 2022 for Australia, Brunei Darussalam, Cambodia, the People’s Republic of China, Japan, Lao People’s Democratic Republic, New Zealand, Singapore, Thailand and Viet Nam, and 1st of February 2022 for the Republic of Korea.
The Ministry of Finance and Economy in its press release stated that the entry into force of RCEP accounts for 12 point 7 trillion US dollars or over a quarter of global trade in goods and services, and 31 per cent of global Foreign Direct Investment, FDI inflows. These figures make RCEP the world’s biggest Free Trade Agreement, FTA that will facilitate global value chains and trade within the region.
As the world continues to grapple with the economic havoc caused by the COVID-19 pandemic, the entry into force of the RCEP Agreement is a strong manifestation of the region’s resolve to keep markets open; boost regional economic integration; support an open, free, fair, inclusive, and rules-based multilateral trading system; and ultimately contribute to global post-pandemic recovery efforts. Parties are convinced that, with the market access commitments made among them, together with streamlined and modern rules and disciplines that facilitate trade and investment, RCEP would deliver new opportunities for businesses, strengthen supply chains in the region, and promote the participation of micro, small and medium enterprises, MSMEs into the regional value chains and production hubs.
The RCEP agreement was signed on the 15th of November 2020 by the ASEAN Member States, Australia, the People’s Republic of China, Japan, Republic of Korea and New Zealand. Brunei Darussalam looks forward to the entry into force of the RCEP Agreement for the remaining signatory States. All exporters in the country are encouraged to utilise the opportunities presented by the RCEP Agreement, particularly the preferential tariff rates on offer and the potential for optimisation of supply chain.
For further information, email to ‘tf@mofe.gov.bn’. The RCEP legal text can be accessed at ‘rcepsec.org’.
Source: Radio Television Brunei