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Original title: RCEP to instigate a new pattern of global trade
Source: Beijing Commercial Daily
After eight years of negotiations, the world’s largest free trade zone agreement was reached. On November 15, the “Regional Comprehensive Economic Partnership Agreement” (RCEP) was formally signed. According to 2018 statistics, compared to other free trade agreements, the RCEP, as a new free trade agreement, covers around 2.3 billion people in 15 member countries, representing 30% of the world’s population, and the Total GDP exceeds US $ 25 trillion.
At the Fourth Regional Meeting of Leaders of the Comprehensive Economic Partnership Agreement, Prime Minister Li Keqiang declared that as the free trade zone with the largest population, the most diverse membership structure, and the greatest development potential in the world, this does not It is just a milestone for East Asia regional cooperation. The significant result is the victory of multilateralism and free trade.
“Circle of friends” in 15 countries
As the world’s largest free trade agreement, RCEP’s member countries include 10 ASEAN countries, as well as China, Japan, South Korea, Australia, and New Zealand. The total population, economic volume and total trade volume of the 15 member countries represent around 30% of the world total. Xinhua News Agency once noted that once the RCEP is reached, it will establish a unified market by lowering member countries’ tariff and non-tariff barriers and become the most populous and potential regional free trade agreement in the world. world.
It is understood that the RCEP negotiations began in 2012. On November 20 of that year, during the East Asian Leaders Meeting in Phnom Penh, Cambodia, the leaders of the 10 ASEAN countries and China, Japan, South Korea , India, Australia and New Zealand jointly issued the negotiations on the “Beginning of the Regional Comprehensive Economic Partnership Agreement” “Joint Declaration” to start the process of construction of the free zone.
During this period, after 3 leadership meetings, 19 ministerial meetings and 28 rounds of formal negotiations, on November 4 of last year, the third RCEP leaders meeting was held in Bangkok, Thailand and the “Declaration joint meeting of the Third RCEP Leaders Meeting “. It was announced that 15 countries had completed all textual negotiations and virtually all market access negotiations. Due to differences in tariffs, trade deficits with other countries and non-tariff barriers, India eventually withdrew from the negotiations.
Within the framework of this agreement, the agreement consists of a preamble, which includes 20 chapters that include trade in goods, rules of origin, trade solutions, trade in services, investment, electronic commerce, public procurement, etc., as well as trade in goods, trade in services, investment and temporary natural persons. Composition of the mobile engagement table.
“RCEP is not only the largest free trade agreement in the world, but also a comprehensive, modern, high-quality and mutually beneficial free trade agreement.” On the same day, Vice Commerce Minister Wang Shouwen said that now that the agreement has been signed, RCEP member states each comply with national legal approval procedures and strive to promote early implementation of the agreement.
For China, the RCEP signing is at the right time. Since the beginning of this year, ASEAN has overtaken the European Union to become China’s largest trading partner. Under the impact of the epidemic, economic and trade cooperation between the two sides has continued to increase against the trend. The trade volume between the two sides reached 3.79 trillion yuan in the first 10 months, a year-on-year increase of 7%, accounting for 1/7 of China’s total foreign trade; In terms of investment, in the first three quarters, China’s direct investment in the entire ASEAN industry reached $ 10.7 billion, an increase of 76.6% year-on-year.
“For China, it should be headquartered in the Asia-Pacific region, make full use of RCEP and find a firm foothold in the process of future regional economic development and participation in global economic governance, and use it as our “double cycle” new development pattern. It is an important external tool for China, “said Li Bing, researcher at ACCEPT, Tsinghua University.
China and Japan reached a tariff reduction agreement for the first time
It should be noted that on the day the agreement was signed, the Ministry of Finance mentioned that China and Japan reached a bilateral tariff reduction agreement for the first time, achieving a historic breakthrough. The RCEP agreement is understood to be the first free trade agreement between China and Japan, and it is also the first free trade agreement between Japan and South Korea.
As a major economy in East Asia, China, Japan, and South Korea have close economic ties. However, the China-Japan-Korea Free Trade Agreement negotiation has gone through 16 rounds of negotiations since its inception in 2012 and has yet to take place. In this case, the conclusion of the RCEP agreement was The industry regards it as a “compromised solution”.
According to data from October 1 this year, Japan and South Korea are currently China’s fourth and fifth most important trading partners, second only to ASEAN, the European Union and the United States. The total commercial volume has increased by 1.5% and 0.8%. Pang Chaoran, a research associate at the Research Institute of the Ministry of Commerce, noted that the agreement is the first trade agreement between China, Japan and South Korea, and is an important foundation for the future development of East Asian countries.
In addition, the Ministry of Finance also mentioned that tariff reductions among members are mainly based on the commitment to immediately reduce tariffs to zero and reduce tariffs to zero in ten years. The free trade zone is expected to achieve significant phased construction results in a relatively short period of time. In this regard, Pang Chaoran pointed out that this measure will help reduce the cost of cross-border flow by promoting more bilateral trade development, efficient cross-border flow and free of factor resources, and thus help the industrial chain supply chain to optimize and improve the design based on comparative advantages.
Bai Ming, deputy director of the International Market Research Institute of the Ministry of Commerce, further said that the conclusion of the agreement will help to connect the commercial chain more closely by reducing the connection cost. “Sometimes a complete commercial chain involves many countries. It will achieve full coverage and a fluid flow of the international industrial chain in the region. “
However, there are also some comments in the market that “With the rising cost of land and domestic talents, in recent years, some foreign countries have gradually moved their industrial chains to Vietnam and other countries. The conclusion of this deal may accelerate the industry overflow trend. ” In response to this concern, Pang Chaoran noted that the regional trade agreement has a complex impact on the countries of the region, or has an impact on changes in the design of some low-cost and cost-sensitive industries, but at the same Time will also absorb what is adequate for the stage of economic development of the country and the real needs. The entry of links to promote efficient resource allocation. At the same time, it will also help our country’s products to better explore regional and national markets and achieve larger-scale effects.
“Multilateralism and free trade are the right way”
“The RCEP was signed in the current context after eight years of negotiations, allowing people to see the light and hope in the dark, showing that multilateralism and free trade are the right way and way, and still They represent the right direction for the world economy and humanity. ” Li Keqiang said.
In recent years, world trade has caught fire everywhere and unilateralism has prevailed. Among them, America’s “group withdrawal” has become the norm. From the TPP to the Universal Postal Union, according to incomplete statistics, Trump has withdrawn from 18 international organizations since taking office. Under threat from the United States, the WTO was once suspended. The Director General is still pending. Already when Trump withdrew from the TPP, institutions such as the World Bank and the International Monetary Fund warned that risks such as increased trade protectionism would threaten global economic growth.
In the recently concluded US elections, victorious Democratic presidential candidate Biden was also noted for his advantages in tariffs, comprehensiveness and progress.The Pacific OceanPolicies such as the Association Agreement (CPTPP) and the reform of the WTO can normalize the current situation. During the election campaign, Biden has stated that if elected president, he will use existing trade laws to respond to China’s trade policy, strengthen cooperation with allies, and seek multilateral solutions to problems.
Pang Chaoran said that at present, China has achieved high-level regional economic integration with 14 member states and promoted the development of economic globalization and liberalization by enhancing liberalization and facilitating regional trade and investment, and strongly supporting the consensus on the development of multilateralism; It is China and Japan, as the second and third largest economies in the world, that have reached tariff reduction agreements for the first time, and they will also form a personalized balance for the United States to some extent, “Bai Ming noted.
Li Bing pointed out that the signing of the RCEP agreement will surely bring some pressure to the United States. “If Bi finally comes to power, the United States is likely to re-implement the proposed TPP deal during Obama’s term in the Asia-Pacific region, thereby creating direct and direct competition with RCEP. We must be prepared.”
“After the agreement is in force, domestic companies still need to help companies make good use of the content of the agreement, especially the rules of origin; at the same time, promote bilateral economic and commercial exchanges, organize companies to go to relevant markets for exchanges and help products meet supply and demand, “said Pang Chaoran.
Beijing Business Daily Reporter Tao Feng Liu Hanlin
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