General

The Regional Comprehensive Economic Partnership (RCEP) has been in full force for some time for 15 signatories. During the interview with Securities Daily reporters, I truly felt the changes brought by the new round of policy dividends to foreign trade enterprises.

In an interview with the Securities Daily, a person in charge of a foreign trade company in Jiangsu Province that mainly deals in Sports equipment said that the company's sporting products are mainly sold to Southeast Asia. This type of product is subject to the current RCEP agreement tariffs, which are slightly lower than the China ASEAN Free Trade Agreement, and can be reduced to zero tariffs after the transition period. Since last year, the company's products sold to Thailand have enjoyed tariff preferences. This month, RCEP has come into full effect, filling the "gap" in the Philippines and helping us further explore the Southeast Asian market.

The reporter learned from Nanchang Customs that on the day that RCEP came into effect for the Philippines (June 2), Nanchang Customs applied for the Certificate of origin of RCEP for a fireworks trading company to export to the Philippines. With this certificate, a batch of fireworks and firecrackers worth approximately 380000 yuan can enjoy a reduction of approximately 38000 yuan in Philippine import tariffs.

Liu Xiangdong, Vice Minister of the Economic Research Department of the China Center for International Economic Exchanges, said in an interview with the Securities Daily that RCEP is fully effective for all member countries, which means that it will promote the free flow of raw materials, products, technology, talents, capital, information and data and other production elements in the region, and also means that foreign trade enterprises have another choice on the basis of the original free trade agreement.

The same goods from the same country of origin correspond to different tariff concessions and rules of origin under each free trade agreement. Currently, China has signed nearly 20 free trade agreements, and foreign trade enterprises can choose the optimal free trade agreement to reduce trade and customs clearance costs, obtain greater commercial benefits, and improve their competitiveness. "Liu Xiangdong further analyzed.

Chen Jianwei, Associate Professor of the National Institute of Opening up at the University of International Business and Economics, told Securities Daily that for China's foreign trade enterprises, the full implementation of RCEP will release three dividends: firstly, expanding market access. After RCEP takes full effect, member countries will mutually expand the opening of international trade markets, which increases the opportunities for China's foreign trade enterprises to enter relevant national markets; Secondly, to reduce trade barriers, RCEP has adopted high standards of trade rules and negotiation results, eliminated most tariffs, simplified trade procedures and rules, which will reduce the costs of China's foreign trade enterprises, improve efficiency, and thereby increase trade volume; Finally, by actively participating in RCEP and utilizing rules of origin, enterprises can engage in trade cooperation with more countries and regions around the world and share global business opportunities.

In Chen Jianwei's view, the full implementation of RCEP will also promote deep integration of industrial and supply chains within the region, including reducing trade barriers, optimizing logistics and transportation, promoting technological innovation and cooperation, and improving supply chain transparency and efficiency. At the same time, improve the overall competitiveness of the region and jointly expand the market cake.

According to data from the Ministry of Commerce, in 2022, the total international trade import and export volume between China and other RCEP member countries reached RMB 12.95 trillion, a year-on-year increase of 7.5%, accounting for 30.8% of China's total international trade import and export volume. From January to April 2023, China's total import and export volume with other RCEP member countries was 4.12 trillion yuan, a year-on-year increase of 7.3%, accounting for 30.9% of China's total international trade import and export volume.

Chen Jianwei stated that the total population, GDP, and trade value of goods in the RCEP region all account for about 30% of the global proportion. According to the calculation of an average 10% reduction in tariffs after the full implementation of RCEP, based on the relationship between the degree of tariff changes and changes in trade volume, it is estimated that there is still more than 20% increase in trade volume between China and RCEP member countries in the future, which will inject new momentum into China's international trade development. (Transferred from: Securities Daily)