In the second online special training on the Regional Comprehensive Economic Partnership Agreement (RCEP) recently held by the Ministry of Commerce, Yu Benlin, Director of the International Department of the Ministry of Commerce, revealed that China has taken the lead in completing the approval of the RCEP agreement. All other member states of RCEP also expressed that they will work hard to promote the formal entry into force of the agreement on January 1 next year. After the agreement comes into effect, more than 90% of the goods trade in the region will eventually achieve zero tariffs, which can be divided into immediate zero tariff reduction and zero tariff reduction within ten years.
Zhang Yiqun, vice chairman of the Performance Management Committee of the Chinese Institute of Finance, told a reporter from the Securities Daily that the RCEP cargo tariff reduction commitment arrangement will enable future RCEP member countries to significantly reduce tariffs, and ultimately achieve zero tariffs and fundamentally realize RCEP member countries. A unified large market, comprehensively promotes the convenience of trade in goods between member countries, greatly reduces the cost of trade in goods, and establishes a larger and more influential trade mechanism for equality and mutual benefit. It also helps strengthen the countries in the region. The ability to develop advantageous industries and promote the construction of a complete industrial chain in the region.
According to Yu Benlin, in the future, Indonesia will cancel tariffs on my country on processing aquatic products, cosmetics, rubber, luggage, clothing, footwear, engines, televisions, automobiles and spare parts, motorcycles, etc.; the Philippines will eliminate tariffs on pharmaceutical products, plastics and their products, automobiles and other products. my country's zero-tariff treatment is granted to parts and components. my country is also opening its market to ASEAN on diesel, some chemicals, paper products, and some auto parts on the basis of the original China-ASEAN Free Trade Agreement.
Guo Yiming, director of investment advisory at Jufeng Investment Consulting, told a reporter from the Securities Daily that the RCEP cargo tariff reduction commitment arrangement will greatly promote trade exchanges between member countries. After the implementation of the RCEP agreement, the scale of tax reductions for related industries will be further expanded, which will effectively promote China's exports and drive more Chinese products to go global.
If the RCEP goods tariff reduction commitment plans a national-level tax reduction arrangement, then the RCEP origin accumulation rule is to formulate new guidelines on how to enjoy preferential treatment at the enterprise level. Yu Benlin said that according to the rules of accumulation of origin, when determining the qualification of product origin, the materials of origin of each RCEP member country can be accumulated to meet the 40% value-added origin standard of the final export product, so that it is easier to enjoy the preferential treatment. Tariffs are conducive to promoting trade in intermediate products.
Guo Yiming believes that the RCEP’s cumulative rules of origin will, on the one hand, make it easier for companies’ products to meet the requirements of the rules of origin and enjoy preferential tariffs, which will greatly help companies reduce costs and improve the competitiveness of their export products. On the other hand, it will also promote the further development of the upstream and downstream supply chains in the region.
Zhang Yiqun said that RCEP brings both vertical and horizontal development opportunities to enterprises. Vertical development helps companies tap their potential, promote innovation in products, technology, management, and other aspects, and consolidate and enhance their advanced productivity. Horizontal development will help expand the market space of enterprises and increase market share and influence of products in a fairer competitive environment. Therefore, enterprises should seize the development opportunities brought by RCEP, cultivate internal strength, increase external strength, and enhance the overall competitiveness of the enterprise.
"RCEP is the world's largest free trade zone. It provides companies with a good opportunity for development, which will greatly reduce their production and investment costs, thereby expanding their profitability, and at the same time, it can also bring more market space for companies. "Guo Yiming said.
