On June 2nd, the Regional Comprehensive Economic Partnership Agreement (RCEP) officially entered into force for the Philippines, marking the full entry into force of RCEP for 10 ASEAN countries and 15 signatory countries including Australia, China, Japan, South Korea, and New Zealand. The Ministry of Commerce stated that the total population, GDP, and trade value of goods in the RCEP region all account for about 30% of the global total. The full entry into force of the agreement for 15 parties marks a new stage in the comprehensive implementation of the world's most populous, largest economic and trade scale, and most promising free trade zone.
Preliminary results have been achieved since implementation
On November 15, 2020, the 10 ASEAN countries, along with Australia, China, Japan, South Korea, and New Zealand, jointly signed the RCEP and promoted its official entry into force on January 1, 2022. The person in charge of the International Department of the Ministry of Commerce introduced that with the joint efforts of all parties, the implementation of RCEP has achieved initial results——
The trade in goods between members is becoming closer, and intra regional trade has become a key force in stabilizing and driving the growth of foreign trade among members. Benefiting from the positive signals released by the effective implementation of RCEP, this region continues to become a hot spot for global investment. Most members have shown a positive upward trend in utilizing foreign investment, and the overall attraction of green space investment in the region is strong.
The implementation of RCEP has played an important role in stabilizing China's foreign trade and foreign investment. From a trade perspective, in 2022, China's total import and export volume with other RCEP members reached RMB 12.95 trillion, a year-on-year increase of 7.5%, accounting for 30.8% of China's total foreign trade import and export volume. From January to April 2023, China's total import and export volume with other RCEP members was 4.12 trillion yuan, a year-on-year increase of 7.3%, accounting for 30.9% of China's total foreign trade import and export volume. From the perspective of attracting foreign investment, in 2022, China's actual utilization of investment from other members of RCEP reached 23.53 billion US dollars, an increase of 23.1% year-on-year. From January to April 2023, China's actual utilization of investment from other members of RCEP reached nearly 8.9 billion US dollars, a year-on-year increase of over 13.7%.
RCEP brings tangible dividends and benefits to the vast number of enterprises in China. The combination of RCEP and the effective bilateral free trade agreements between China and other members of RCEP has created favorable conditions for enterprises to better enjoy benefits and helped them reduce trade costs. In 2022, Chinese enterprises will enjoy a preferential export value of RMB 235.3 billion under RCEP, and can enjoy a tariff reduction of RMB 1.58 billion from the importing country; The import value of Xianghui is 65.3 billion yuan, with a tax reduction of 1.55 billion yuan. In the first quarter of 2023, Chinese enterprises enjoyed a preferential export value of 62.29 billion yuan under RCEP, and could enjoy a tariff reduction of 930 million yuan from the importing country; The import value of Xianghui is 18.25 billion yuan, with a tax reduction of 480 million yuan.
Promote the free flow of production factors within the region
With the official entry into force of RCEP for the Philippines, China will implement RCEP tariff concessions with the Philippines. According to the announcement issued by the Tariff Commission of the State Council, starting from June 2, 2023, the agreed tariff rates applicable to ASEAN member countries of RCEP will be applied to some imported goods originating in the Philippines
