Significance of the RCEP Agreement – the focus of the 37th ASEAN Summit

Ministers of 15 Asia-Pacific countries have agreed to sign the Regional Comprehensive Economic Partnership (RCEP) trade agreement on November 15.

A door open to India
Malaysian Minister of Industry and International Trade Mohamed Azmin Ali said that 15 countries “have concluded negotiations and will sign the RCEP agreement on November 15”.
Earlier, Indonesian Trade Minister Agus Suparmanto on November 10 also expressed the hope that the RCEP agreement, with the participation of 15 economies in the Asia-Pacific region, will be signed at the summit. top. Member countries take place in the framework of the ASEAN Summit and related meetings this week hosted by Vietnam via online form.

15 economies in the Asia-Pacific region, accounting for 29% of the global gross domestic product (GDP).The agreement will enter into force in 2021 or January 2022.

Economic recovery and development
The RCEP will cut tariffs and establish rules in about 20 sectors, including cross-border flows of goods. For Japan, the agreement will reduce tariffs on agricultural and fishery products compared to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) or the Agreement on Japan Economic Partnership – European Union. The RCEP will also eliminate tariffs on 61% of goods imported to Japan from ASEAN members, Australia and New Zealand, along with 56% from China and 49% from South Korea.
According to the draft RCEP Agreement, Japan will not exempt or reduce taxes for key agricultural products such as rice and wheat. In addition to these two agricultural products, Japan will also still impose tariffs on other sensitive agricultural products such as beef and pork, dairy and sugar to protect domestic farmers from cheap imported goods.
As for Japanese exports, the RCEP is expected to eliminate Chinese tariffs on some scallops by the 11th year after it comes into effect; The Korean tax on sweets will be eliminated in the 10th year and Indonesia’s taxes on some beef types will come into effect. Taxes on Japanese sake and spirits will also be eliminated.
Given the fact that the negative effects of Covid-19 have created many challenges to the movement of trade and investment flows in the region, the rapid signing of the RCEP is expected to greatly boost growth. development of regional and global value chains, helping ASEAN economies recover and develop; including Vietnam and partner countries.

Source: kinhtedothi

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