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The complete implementation of the Regional Comprehensive Economic
Partnership agreement will help bolster trade and investment between China and
other participating countries, and will advance long-term prosperity and growth
for the global economy, according to trade experts and business executives. Their comments on Wednesday came after the Philippines deposited its
instrument of ratification of the RCEP agreement with the secretary-general of
the Association of Southeast Asian Nations on April 3, marking the final step
toward the agreement's full implementation. The trade pact took effect for the first 10 ratifying countries on Jan 1 last
year. Under RCEP rules, the trade deal will take effect for the Philippines 60 days
after the deposit of ratification, or June 2. At that time, the world's largest
free trade agreement will come into full effect for all 15 signatory countries,
the Ministry of Commerce said in a statement on Wednesday. The ministry said the full implementation of the RCEP pact will meet the
needs of China's consumption expansion and upgrade, and consolidate regional
industrial and supply chains. Liu Qing, vice-president of the Beijing-based China Institute of
International Studies, said the agreement's full implementation will also
expedite the integration of capital, resources, technologies and services,
forming a comprehensive cycle of regional economic cooperation. As a result, RCEP members will be able to accelerate the optimization of
resources and promote institutional opening-up, therefore expanding their global
presence and strengthening their competitive edge, said Liu. The integration will also help stabilize regional industrial chains and
provide a stronger buffer against external risks, he added. China's foreign trade with other RCEP economies grew by 7.5 percent
year-on-year to 12.95 trillion yuan ($1.88 trillion) in 2022, accounting for
30.8 percent of the country's total exports and imports last year, statistics
from the General Administration of Customs show. China's nonfinancial direct investment in other RCEP countries surged 18.9
percent year-on-year to $17.96 billion last year, while the nation attracted
$23.53 billion of investment from other RCEP members, up 23.1 percent
year-on-year. Zhao Ping, vice-dean of the Beijing-based Academy of China Council for the
Promotion of International Trade, said the RCEP has boosted the confidence of
its member countries in free trade, green development and regional economic
integration, particularly amid global geopolitical complexities. She said the mega pact will facilitate cooperation among countries at
different stages of development, providing them with opportunities to work
together and benefit from mutual cooperation. The RCEP will also continue to
inject vitality into the global economy, making industrial and supply chains
more resilient. According to an estimate by the Washington-based Peterson Institute for
International Economics, the RCEP is expected to see a net annual increase of
$519 billion in exports and $186 billion in national income of its members by
2030. As the RCEP has created favorable conditions for boosting two-way investment
and foreign trade volume, companies from participating countries will show a
stronger inclination to participate in various trade shows in the Asia-Pacific
region in the years ahead, said Wolfgang Marzin, president and CEO of Germany's
Messe Frankfurt, one of the world's largest trade fair and event organizers by
sales revenue. The Ministry of Commerce said that under RCEP rules, Chinese products,
including automobiles and parts, certain types of plastic products, textile and
clothing products, air conditioners and washing machines, will enjoy favorable
tariff treatment from the Philippines. After a transitional period, tariffs on these products will gradually be
reduced to zero from their current range of 3 to 30 percent of the tariff
rate. Fresh durians from the Philippines were shipped to China last week, after
China and the Southeast Asian country signed an export protocol in Beijing in
January. From pineapples to avocados, and now durians, the vast Chinese market is
constantly generating fresh business opportunities for the Philippines, said
Ding Lixin, a researcher at the Chinese Academy of Agricultural Sciences in
Beijing.
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