On January 1, 2022, the news that RCEP took effect was swiped. RCEP, the regional comprehensive economic partnership agreement came into effect and implemented, which means that the world's largest free trade zone has officially set sail.
Why has this agreement received such attention? The reporter interviewed relevant people and experts for interpretation.

Aspect 1: How important is this agreement?

RCEP currently has 15 member states, including China, Japan, South Korea, Australia, New Zealand, and 10 ASEAN countries. In terms of population, economic size, and total trade, they all account for about 30% of the global total.
After 8 years of negotiation, RCEP was signed on November 15, 2020. On New Year's Day in 2022, RCEP officially entered into force for 10 countries including Brunei, Cambodia, China, Japan, and New Zealand. The remaining member states will also take effect one after another after completing the domestic approval procedures.
"Under the impact of the epidemic, RCEP is still signed and effective as scheduled, and it has issued strong voices against unilateralism and trade protectionism, support for free trade and maintenance of the multilateral trading system, which will help boost confidence in the regional and even global economic recovery after the epidemic. "Said Tu Xinquan, Dean of the China WTO Research Institute at the University of International Business and Economics.
The total number of zero-tariff products in trade in goods exceeds 90%, and the level of service trade and investment openness is significantly higher than the original bilateral free trade agreements between member states...covering 20 chapters, RCEP covers all aspects of trade and investment liberalization and facilitation. It embodies the characteristics of comprehensiveness, modernity, high quality and mutual benefit.
Yuan Bo, deputy director of the Asian Institute of the Ministry of Commerce Research Institute, said that RCEP has greatly reduced the trade and investment costs of member countries, will effectively promote intra-regional trade and investment, enhance the resilience of regional industrial chains and supply chains, and help countries resist external economic turmoil. And shock.
Evaluation of the UNCTAD report: The entry into force of this agreement will greatly promote the growth of foreign direct investment within the region and other economies in the region.
Vice Minister of Commerce Ren Hongbin said that the effective implementation of the RCEP agreement is a new milestone in China's opening up to the outside world, providing strong support for the construction of a new development pattern, and will also inject new impetus into China and the world's economic growth.
　　
Aspect 2: What kind of opportunities does it bring to the enterprise?

For enterprises, the biggest benefit after RCEP takes effect is the reduction in import costs and the increase in export opportunities brought about by the reduction of tariffs.
According to the RCEP agreement, in the end, 86% of Japanese exports to China will achieve zero tariffs, while 88% of Chinese exports to Japan will enjoy zero tariffs.
For the first time, China and Japan established a free trade relationship and realized bilateral tariff reductions, including some aquatic products and vegetable products.
"Not long ago, an order for 1,000 tons of salmon and trout products from a Japanese customer came back!" Guo Xiaohua, executive vice president of Shandong Meijia Group Co., Ltd., said that the original customer imported this product from Southeast Asian countries, because the RCEP tariff was lowered and the order was returned to China. . "With the tax reduction year by year, I believe orders will continue to grow." This company, which mainly processes and sells frozen aquatic products and vegetables for export, feels particularly about the policy dividend.
Expanding the market, securing the chain, and enjoying services-Yang Zhengwei, deputy director of the Department of International Economic and Trade Relations of the Ministry of Commerce, summarized the benefits brought to enterprises by the effective implementation of RCEP.
It not only promotes trade, but also benefits investment. "The implementation of the agreement will undoubtedly attract more foreign investment into Thailand, especially China, which is one of Thailand's most important sources of foreign direct investment." said Xu Genluo, director and senior consultant of the Thai-Chinese Rayong Industrial Park. Measures such as removing tariffs and reducing non-tariff barriers will It will improve the integration of the Sino-Thai supply chain.
There is a very important "accumulation rule of origin" in RCEP. According to this rule, as long as the value-added part of the product in the processing process belongs to 15 member states, and the cumulative value-added exceeds 40%, the corresponding tariff preference can be enjoyed.
"This rule will strongly promote the minimization of production costs and the optimization of trade efficiency in the region, and will help strengthen the cooperation in the industrial chain and supply chain in the region," said Gao Feng, a spokesperson for the Ministry of Commerce.

Aspect 3: How can domestic consumers benefit?

New Zealand milk powder, Korean cosmeceuticals, Japanese electronic equipment, and Thai durian are "frequent customers" of Beijing resident Ms. Zhang's shopping cart. "With lower tariffs, we will buy imported goods cheaper, and there will be more consumer choices." She said.
More choices, lower prices, faster speed...high-quality, affordable, and convenient-these are the three keywords brought to consumers by the effective RCEP.
On the day RCEP took effect, tariffs on a large number of products were immediately reduced to zero. The proportion of immediate zero tariffs between China and ASEAN, Australia, and New Zealand exceeds 65%, the proportions of immediate zero tariffs with South Korea reach 39% and 50%, and the proportions of immediate zero tariffs with Japan reach 25% and 57%, respectively.
After the tax reduction is completed, China's imports of coconut juice, pineapple products, and paper products from ASEAN, as well as induction cookers and electric ovens imported from Japan, will be gradually exempted from tariffs, and more high-quality and inexpensive products will enter consumers' shopping carts.
Not only more, but faster. Perishable goods, such as fresh goods such as seafood, fruits and vegetables, should be released within 6 hours; air cargo is allowed to speed up customs clearance... RCEP adopts paperless trade, electronic certification and other methods, which will make cross-border shopping more convenient .
After the RCEP takes effect, the dividends are not only reflected in shopping but also in services.
In terms of service trade, RCEP member states have generally pledged to open more than 100 service trade departments. "Cross-border e-commerce, Internet finance, online office, online education, online consultation and other new business formats and new models will usher in greater development opportunities, which will enable domestic consumers to enjoy more favorable prices and higher quality services." Gao Feng said.
　　
Aspect 4: How to seize the opportunity to meet the challenge?

The entry into force of RCEP presents both opportunities and challenges.
Reducing import tariffs will promote the growth of trade and investment, and will also intensify industry and enterprise competition. The rules of accumulation of origin will deepen the in-depth integration of the regional industrial chain, and may also speed up the transfer of labor-intensive industries to ASEAN countries with lower land and labor costs.
"The accelerated entry of advanced manufacturing from Japan and South Korea into the ASEAN market will create more market competition." said Li Dongchun, general manager of the International Business Center of Guangxi Liugong Machinery Co., Ltd., and we must accelerate the development of international market response capabilities and look at the international industry from a longer-term perspective. New opportunities for industrial cooperation in reshaping.
The key to the agreement is implementation. Familiar with the rules can better seize the dividends.
The relevant person in charge of the Ministry of Commerce stated that enterprises and local governments should thoroughly study and familiarize themselves with the content of the agreement, thoroughly understand the preferential policies and facilitation rules in the agreement, make good use of the RCEP origin accumulation rules, actively benchmark the international advanced industry level, and continuously enhance market competitiveness.
To help companies seize the opportunities brought by RCEP, commerce, customs and other departments have organized more than 1,000 trainings across the country. Many places have issued special policies to make all-round deployments in terms of expanding the space for trade in goods and deepening two-way investment. In the near future, the Ministry of Commerce and relevant departments will issue the "Guiding Opinions on High-Quality Implementation of RCEP" to guide and help localities and enterprises to better use RCEP rules.
Shen Minghui, deputy dean of the Institute of Asia-Pacific and Global Strategies of the Chinese Academy of Social Sciences, suggested that in the future, on the basis of government preaching and training, third-party services and business associations can be used to increase the support for enterprises, especially small, medium and micro enterprises and the central and western regions. The promotion and training of enterprises, and further establish and improve the public service platform for the implementation of RCEP and other free trade agreements.
Shen Minghui said that it is necessary to promote the effective implementation of the RCEP agreement in all member states as soon as possible, so as to truly play its role in driving regional economic growth.