Export Boost is to be expected from the recently signed Regional Comprehensive Economic Partnership (RCEP). It will broaden trade in goods and services, deepening economic integration among the 10 Southeast Asian countries, South Korea, Japan, Australia, and New Zealand. By far, this is the world’s largest trading agreement bloc covering 30% of the global economic output in the coming years.
RCEP is a “modern and comprehensive type of FTA,” said the Department of Trade and Industry (DTI) Secretary Ramon Lopez. “…RCEP will cover a lot more areas, not just trade in goods but also in services, investment, intellectual property, micro-SME, e-commerce. New items are now included in the RCEP, better market access for automotive cars, garments, electronics, and even for services such as legal accounting and engineering…” he added.
The said partnership agreement offers a more straightforward trading framework, mostly benefiting imports and exports through trade liberalization and enhancing cross-border investment. It will lower import fees, broaden the source of raw materials, and streamline export/import requirements among member countries, improving the supply chain.
RCEP was signed virtually on 15 November 2020 during the 37th ASEAN Summit hosted by Vietnam. The pact will come into force once enough member-states, six ASEAN countries and three non-ASEAN countries, ratify the agreement domestically. –MRJ