Can we benefit from signing of RCEP?
Consumers were buying imported goods in Chongqing Lianglu Cuntan Bonded Port Area on June 16. (Data file) (Photographed by Zhang Jinhui/Vision Chongqing)
CHONGQING (CQNEWS) -- RCEP has become one of the hottest topics recently. After 8 years, 15 countries formally signed the Regional Comprehensive Economic Partnership Agreement (RCEP) on November 15, and the “world's largest free trade zone” was formed.
RCEP was initiated by ASEAN in 2012. A total of 15 member states have signed the agreement this time, including 10 ASEAN countries and China, Japan, South Korea, Australia, and New Zealand. In terms of total population, economic volume and total trade, it accounts for about 1 / 3 of the global total.
RCEP requires 15 member states to undertake to reduce tariffs, open markets and reduce standard barriers. Wang Shouwen, Vice Minister of Commerce, said that on the whole, the number of zero tariff products in goods trade exceeded 90%. So, what opportunities will the signing of RCEP bring to Chongqing?
It’s cheaper to buy imported goods when the tariff goes down.
After the signing of the RCEP, whether it will be cheaper to buy imported cosmetics, electronic equipment, food, clothing, and tropical fruits from member states has become a hot spot of concern for the Chongqing “buyers”.
“Whether it is a company or a citizen, it will be cheaper to buy imported goods and raw materials,” said the relevant person in charge of the Foreign Trade Management Office of Chongqing Municipal Commission of Commerce. Take the clothing industry as an example. China imports wool from New Zealand, makes fabrics, and then exports them to Vietnam. After Vietnam makes garments, they export them to South Korea and Japan. Each import and export charges tariffs. These costs will also Apportioned to consumers. After the RCEP is signed, the above operations between member states may be tax-free. In this way, the cost of a piece of clothing is reduced, the price will be reduced, and consumers will buy it cheaper. At the same time, due to lower production costs, the local textile industry may also usher in new opportunities for development.
Yang Xuchao, Director of the Trade Promotion Department of Chongqing Municipal Council for the Promotion of International Trade, believed that the signing of RCEP and the abolition of tariffs and non-tariff barriers would also greatly reduce the cost of enterprises, lower the “threshold” of market access for enterprises in regional countries, and greatly promote the liberalization of international trade and facilitation.
From the perspective of Chongqing’s foreign trade, the signing of RCEP will not only promote trade, but also be a great opportunity. RCEP members are important partners in Chongqing’s foreign trade. According to the data, in 2019, Chongqing’s import and export to ASEAN was 108.67 billion yuan, an increase of 43.2%. In the first three quarters of this year, Chongqing’s import and export to ASEAN was 83.59 billion yuan, with a year-on-year growth of 6%. At present, ASEAN has become the region with the largest share of foreign trade import and export in Chongqing. In 2019, Chongqing’s import and export to Japan, South Korea, Australia and New Zealand will reach 91.46 billion yuan, an increase of 5.4%. And its export will reach 41.74 billion yuan, an increase of 19.6%. Chongqing’s trade with Japan, South Korea and new Australia has gradually increased.
“With the opportunity of RCEP, Chongqing will promote the implementation of RCEP,” Yang Xuchao said. (Translated by Luo Juan, Fathom Language Limited)