On the 15th November 2020, 15 countries signed the Regional Comprehensive Economic Partnership (RCEP), which upon ratification, will become the largest preferential trade agreement by economic output in the world, with the potential to increase trade and integration among the economies of East Asia. China and Thailand have passed the legal procedings in February and March respectively, while Japan just passed it on April 28. It is expected that most of the members will ratify the agreement within 2021, and that RCEP will become effective starting from January 2022.
Together with China, Japan and Thailand other countries taking part in the agreement are Australia, Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, New Zealand, the Philippines, Singapore, South Korea and Vietnam.
The general objective of RCEP is to facilitate the trade of goods and services and to create a competitive investment environment, with a particular focus on:
The unified Rules of Origin together with the enhancement of access to different markets are expected to make investments in more than one country a valid and attractive strategy for companies. Furthermore, the common Rules of Origin will also lower the cost of supply for firms whose supply chains are spread on the whole Asia. Moreover, corporations in RCEP countries might be encouraged to create supply chains in the whole block, increasing the value chain activity of the region.
At D.B. Group we stay at our customers’ side to assist them in every step of their supply chain management. With our branch offices in China, Japan, Thailand, Vietnam, Cambodia, Myanmar and Australia we will be able to provide the best solutions on customs, logistics and transport operations to make sure you will benefit of all the advantages arising from the RCEP.
Contact us to know more about the opportunities!