Our network partner Zhao Deming explains to us in a video interview the importance of RCEP (Regional Comprehensive Economic Partnership): a free trade agreement that spans about 30% of the world’s population and also 30% of the world’s trade volume.
RCEP will have an impact not only on trade but also on investment decisions through tariff reductions and related rules on preferential origin of goods. Moreover, the unique participation of China and Japan in the FTA will greatly boost trade volumes in the region.
However, the RCEP has not yet entered into force. This will only be the case 60 days after at least 6 of the ASEAN countries and 3 of the non-ASEAN countries have ratified RCEP.
In the interview, Deming speculates that China may ratify the treaty in the middle of the year and RCEP will enter into force this year; Singapore has only recently completed the ratification process.
In addition to the benefits for the region, EU companies are also likely to benefit from RCEP in the future: through a more cost-effective supply chain and the reductions in duties, it is quite conceivable that production locations in the RCEP region will once again become significantly more attractive.
However, in order to fully benefit from the advantages of free trade for RCEP origin goods, it is necessary to implement processes, structures and tools for determining the preferential origin of goods that map the legal regulations of RCEP.
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