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SINGAPORE: After what has been a challenging year, the signing of the Regional Comprehensive Economic Partnership (RCEP) agreement “will be the bright spot that points the way forward,” the Minister of Commerce and Commerce said on Sunday (November 15). Industry, Chan Chun Sing.
“The signing of the RCEP agreement is a timely boost for the long-term prospects for the region. It will be the bright spot that points the direction to take,” Chan told the media after the signing.
“At a time when support for multilateralism is wearing thin, the RCEP will send out a clear statement of the region’s unwavering support and commitment to the multilateral trading system,” he said.
READ: Asia-Pacific nations sign the world’s largest trade pact, RCEP
Chan noted that 2020 has been a challenging year, “with global disruptions in production and supply chains as a result of the COVID-19 pandemic.”
“The aftermath will last for years to come and it will take time for us to rebuild our economies and recover from the crisis.”
“Still, no economy can recover on its own. As internal pressure builds, it is understandable to want to bring production onshore and bring supply chains closer to home. However, this is not the most sustainable strategy.”
“At times like these, we have to keep working together to recover from the crisis and chart a new path for the future,” Chan said.
READ: What is the RCEP trade agreement?
Prime Minister Lee Hsien Loong in his speech at the RCEP Summit described the signing of the agreement as “a great step forward”.
But now begins the hard work of implementing the agreement and encouraging our companies to make the most of it.
“We have all made difficult concessions to move the negotiations forward. And we will have to work hard to persuade our citizens that RCEP will benefit them, ”said Mr. Lee.
“But I have no doubt that RCEP is an asset to all of us and will help stem the tide against globalization.”
LEE: Prime Minister Lee says Singapore will contribute US $ 100,000 to ASEAN’s COVID-19 fund and praises the signing of the RCEP as a ‘great achievement’
CONSOLIDATION OF TRADE RULES, GREATER ACCESS TO THE MARKET
The RCEP consolidates smaller existing agreements to form the world’s largest free trade agreement, covering one-third of the world in terms of both GDP and population.
It comprises “a diverse group of Asian countries,” Mr. Chan said, ranging from the developed economies of Japan, South Korea, Australia and New Zealand to the middle-income economies of ASEAN, plus China, the second largest economy. biggest in the world.
“And our determination to carry this out in this challenging year shows an awareness that our prosperity and success are interrelated,” he added.
For Singapore, RCEP will expand preferential market access for goods, especially in China, Japan and South Korea, Chan said.
“In some of these markets, additional preferential market access reaches 22 percent,” benefiting companies, especially in the chemical and plastics sectors, as well as processed foods, he added.
Singaporean exporters will also benefit from reduced transaction times and costs, as well as “greater certainty” due to simplified customs procedures and improved trade facilitation measures.
In some RCEP markets, at least 65 percent of the service sectors will be open to foreign participation and with higher foreign participation limits. At least 50 subsectors will be open for 51 percent of foreign shares in sectors such as telecommunications, financial services, computer-related services, professional services, and distribution and logistics services.
“Improved investment rules and disciplines” will also improve transparency and provide investors with guarantees against performance requirements prohibited by governments, Chan said.
RCEP will also help companies “take advantage of regional value chains” by consolidating the various existing rules into a single regulation, he added.
Emerging business fields, including e-commerce, competition policy, and intellectual property (IP) rights, are also pursued under the RCEP.
“THE WORK REMAINS TO BE DONE”
To reap the benefits of the RCEP, “work remains to be done,” said Mr. Chan, adding that the signatories should “accelerate efforts to ratify the agreement as soon as possible.”
RCEP will enter into force when six ASEAN countries and three non-ASEAN countries have ratified it.
Chan said Singapore will ratify the RCEP “definitively” within the next 12 months. And although there is no “firm timetable” for the rest of the countries, “we hope that this will be done as soon as possible because I believe that all the countries involved have committed to streamline their internal processes,” he said.
Chan said the early implementation of RCEP will potentially provide more opportunities for Singapore’s trade with the other 14 signatories, which totaled 50.4 percent (S $ 515 billion) of the island’s global trade in 2019.
“For Singapore, the RCEP provides a strong foundation to rebuild our economy and overcome challenges as we emerge from the pandemic together,” said Mr. Chan.
“I look forward to seeing our companies leverage the benefits of RCEP to support their recovery efforts after a pandemic.”
Meanwhile, consumers will have “more competitive options to consider when purchasing your products (as) some of the savings from tariffs will ultimately translate into savings for consumers as well,” he added.
