On November 15th, 2020, the RCEP Agreement was officially signed, marking the successful launch of the largest and most influential free trade agreement in the world.

On November 2ndm 2021, it was learned that six ASEAN members, namely Brunel, Cambodia, Laos, Singapore, Thailand and Vietnam, and four non-ASEAN members, namely China, Japan, New Zealand and Australia, has submitted their approval documents, which had reached the entry into force threshold of the RCEP Agreement and would take effect on Jnuary 1^st,2022. 

Compared with the previous bilateral FTAs, RCEP’s service trade field has reached the highest level of the above-mentioned 15-country FTA. In the field of cross-border e-commerce, RCEP  has  reached  high-level  trade  facilitation  rules, which will significantly improve the efficiency of cross-border trade in customs  and logistics; Financial services will drive the growth of supply chain financial demand such as financial settlement, foreign trade insurance, investment and financing.

Advantages:

Zero-tariff products cover more than 90°/o

There are two ways to  reduce taxes : to  zero  tariff  immediately  after taking effect  and  to  zero  within  10 years. Compared with  other  FTAs , under  the same preferential tariff, enterprises will gradually adopt RCEP, a better origin policy, to enjoy preferential treatment.

Cumulative  rules of origin  reduce the threshold of benefiting

RCEP  allows   the  intermediate   products   of  several   parties  to required   value-added   standards   or   production   requirements , threshold of enjoyi ng zero tariff is obviously reduced .

Provide a broader space for service trade

China promises to further expand the scope of commitment on the basis of China’s accession to WTO; On the basis of China’s entry into WTO, further remove   restrictions .  Other RCEP member countries also promised  to provide greater market access.

Negative investment list makes investment more liberal

China’s negative  list  of  investment  liberalization  commitments  in five non service  sectors ,  namely  manufacturing,  agriculture,  forestry,  fishery   and mining, was  implemented. Other RCEP member countries are also generally open to  the  manufacturing  industry .  For agriculture,  forestry,  fishing  and mining   industries ,   access   is   also   allowed   if   certain   requirements   or conditions are met.

Promote trade facilitation

Try  to  release  the  goods  within  48  hours  after  arrival;  Express  goods,  perishable goods, etc. shall be released within 6 hours after the arrival of the goods ; Promote all parties  to  reduce  unnecessary  technical  barriers  to  trade  in standards  recognition, technical  regulations   and  conformity   assessment  procedures ,  and  encourage  all parties to strengthen cooperation  and exchanges  in standards, technical regulations and conformity assessment procedures .

Strengthen the protection of intellectual property rights

The content of intellectual property  is the longest  part of RCEP agreement, and it is also  the  most  comprehensive  chapter  on  intellectual  property  protection  in  FTA signed  by  China  so  far.  It  covers  copyright,  trademarks,  geographical  indications, patents, designs, genetic resources , traditional knowledge and folk literature and art, anti-unfair competition and so on.

Promote the use, cooperation and progress of e-commerce

The  main  contents   include:  paperless  trade,  electronic  authentication,  electronic signature, protecting the personal information of e-commerce users and allowing the free flow of cross-border data.

Further standardization of trade relief

Reiterate  WTO   rules   and   establish   transitional   safeguard   system;  Standardize practical    practices    such    as    written    information,    consultation    opportunities, announcement  and  explanation  of  ruling,  and  promote  the  transparency  and  due process of trade remedy investigation.