Over the next 20 years, RCEP is expected to remove a number of tariffs on imported products for member states. The agreement also contains rules on intellectual property, telecommunications, financial and professional services and electronic commerce. This cascade of benefits is an example of the impact of RCEP – the first global trade pact concluded on 15 November – on businesses and consumers. RCEP is expected to benefit its members, while the benefits would be limited for the rest of the world. The removal of barriers to trade and investment would enhance economic integration among RCEP member states and allow for significant benefits from trade. Recent modelling indicates that the agreement would increase the trade bloc`s GDP by 0.4% (or $170 billion) by 2030, with an increase of 0.3% for China and 0.2% for ASEAN members (Figure 3). Increases for Member States are behind the expected positive effect of RCEP on the global economy (0.1% of GDP), although the benefits for non-members are likely negligible. „The current form of the RCEP agreement does not fully reflect the basic spirit and guiding principles agreed by RCEP. Nor does it adequately address India`s outstanding issues and concerns. In such a situation, it is not possible for India to join the RCEP agreement,“ Prime Minister Modi said at the RCEP summit in Bangkok last year. RCEP offers great benefits to businesses in the region by helping to attract investors, transform regional markets into an „integrated market“ and allowing exports to the rest of the world to become much more competitive. The expected key sectors range from thailand`s construction sector to the processed food industry in Singapore and Malaysia, manufacturing in Laos and many more. „Experience shows that this can mean that companies don`t see the urgency and forget about the deal, even if it ultimately comes into effect,“ he said.
Below we give an overview of the features of RCEP, which enhances the existing ASEAN Plus One agreement in four key areas: RCEP, often mistakenly referred to as „China-led,“ is a triumph of the central power`s ASEAN diplomacy. tightening rules of origin: greater flexibility for companies in exploiting the benefits of preferential market access as well as regional cumulation rules allowing companies to include raw materials and parts of a CPR as content of origin, which will make it easier for companies to comply with the rules of origin necessary for their exports; and therefore benefit from preferential treatment. This is a decisive advantage given the broad geography on which RCEP trade takes place. On November 15, 2020, 15 countries – members of the Association of Southeast Asian Nations (ASEAN) and five regional partners – signed the Regional Comprehensive Economic Partnership (RCEP), probably the largest free trade agreement in history. . . .