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The Regional Comprehensive Economic Partnership (RCEP), the world’s largest FTA between ASEAN and five partner countries, was signed on November 15.
The signing ceremony took place online, in the framework of the 37th ASEAN Summit in Hanoi. At 11:45 am, the Brunei Trade Minister was the first to sign the Agreement. The ministers continue to sign in alphabetical order. Vietnam is the last. After that, five ASEAN partners, starting with Australia and finally New Zealand, signed the agreement.
The RCEP is a free trade agreement (FTA) with the participation of 10 ASEAN member countries, including Brunei, Malaysia, Singapore, Vietnam, Cambodia, Indonesia, Laos, Myanmar, the Philippines, Thailand and 5 countries. China, Japan, Korea, Australia and New Zealand are the partners of this bloc.
Industry and Commerce Minister Tran Tuan Anh signed the RCEP in the presence of Prime Minister Nguyen Xuan Phuc on the morning of November 15. Image: Giang Huy.
When implemented, RCEP will create a large market with 2.2 billion consumers, approximately 30% of the world’s population, with a GDP of approximately USD 26.2 billion, approximately 30% of the world’s GDP, and to become the region of free largest trade in the world. With commitments to open markets for goods, services and investment, and harmonization of the rules of origin among all participants, as well as the strengthening of trade facilitation measures, this Agreement will provide opportunities to develop new supply chains in the region.
The RCEP Agreement has 20 chapters, covering areas and principles that have not been seen in previous trade agreements between ASEAN and partner countries. In addition to specific provisions on trade in goods, trade in services, and investment, the RCEP also includes chapters on intellectual property, electronic commerce, competition, SMEs, and business cooperation. technology and public procurement.
For the agreement to enter into force, at least 6 ASEAN member states and 3 partner countries will need to send their ratification documents to the Depositary in accordance with the Agreement. RCEP leaders say the agreement is open and comprehensive. Therefore, the RCEP remains open to India, which has withdrawn from the negotiation process, from the date of entry into force of the agreement. Countries that sign the RCEP, after the signing of the RCEP Agreement, will enter into negotiations with this country as long as India sends a written request to express its intentions. India can also participate in RCEP meetings as observers and in economic cooperation activities conducted by RCEP signatories.
RCEP will help establish long-term stable export markets for ASEAN countries in the context of risky and uncertain global supply chains. In addition, the agreement will create a legally binding framework in the region on trade policy, investment, intellectual property, electronic commerce, dispute resolution, etc., contributing to the creation of an environment. fair trade in the region.
For Vietnam, RCEP helps companies not only access large consumer markets, doubling the size of GDP than CPTPP, but also access raw materials, serving the production chain of products with current export strengths. . Vietnam can import electronic chips from Japan and South Korea; import textile materials from China, then produce domestically and export to other countries, and at the same time comply with rules of origin within the bloc to take advantage of tariff preferences.
Phuong Anh
