Regional Comprehensive Economic Partnership(RCEP) agreement will take effect in six member states of the Association of Southeast Asian Nations, Brunei, Cambodia, Laos, Singapore, Thailand and Vietnam and four non-ASEAN countries, China, Japan, New Zealand and Australia on Jan 1,2022.

What is RCEP?

-Launched in 2012,15 Asia-Pacific countries signed the RCEP on Nov 15,2020 after eight years of negotiations

-Aims to cut tariff and non- tariff barriers

-A free trade agreement to form an integrated market

-The pact will enter into force 60 days after it is ratified by a minimum of six ASEAN members and three non-ASEAN countries

-RCEP is by far the largest free trade area by size

What does RCEP agreement include?

1. Trade in goods
2. Trade in services
   
3. Investment access
   
4. Standards and technology
5. Animal and plant quarantine
6. Economic and technical cooperation
   
7. Intellectual property
   
8. E-commerce
   
9. Dispute resolution and other areas

What will RCEP agreement affect?

What does RCEP do?

1. Creates an integrated market with around one-third of the global economy
2. Integrates trade and economic rulers within the region

China's role in RCEP:

1.MARKET SIZE

China accounts for about 65% of the population in the market, and its GDP and foreign exchange reserves account for half of the total.

2.INVESTMENT VOLUME

In 2019,China invested about $164 billion in the other 14 countries, accounting for 11.95% of China’s outward foreign direct investment flows that year.

3.SOUND BUSINESS ENVIRONMENT

World Bank’s “Global Business Environment Report 2020” indicates China’s business environment has been listed among the top 10 for improvement for two consecutive years.

4.TECHNICAL STRENGTH

China helps other developing countries build infrastructure and train professionals from all walks of life.

Sources: The Ministry of Commerce, CCTV News, China Daily, Xinhua

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