Fifteen countries officially signed Regional Comprehensive Economic Partnership (RCEP), forming the world's largest trading bloc on November 15, 2020.
Launched in 2012 by the Association of Southeast Asia Nations (ASEAN), RCEP was signed by 15 member countries together, including 10 ASEAN countries as well as China, Japan, South Korea, Australia, and New Zealand. They cover nearly a third of the world's total population, economy, and trade.
Yang Xuchao, Minister of Trade Promotion Department of China Council for the Promotion of International Trade Chongqing Committee, believes that the signing of RCEP helps eliminate tariff and non-tariff barriers.
He thinks this will lower enterprise costs and lower market access for these countries, making a great contribution to international trade liberalization and facilitation.
On the one hand, RCEP will boost Chongqing's foreign trade and bring a huge opportunity since all the members of RCEP are its important partners in foreign trade.
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RCEP will boost Chongqing's foreign trade, as well as bringing a huge opportunity.
According to the statistics in 2019, Chongqing's export-import amount to ASEAN reached 108.67 billion yuan, achieving 43.2% year-on-year growth; in the first three quarters of this year, Chongqing's export-import amount to ASEAN reached 83.59 billion yuan, increasing by 6% compared with the period last year. Currently, ASEAN has ranked first in Chongqing's export-import share.
In 2019, Chongqing's export-import amount to Japan, South Korea, Australia, and New Zealand reached 91.46 billion yuan, up 5.4%, in which the export amount reached 41.74 billion yuan, up 19.6%. The trade for Chongqing to the four countries has seen a gradual increase.
"By taking the opportunity of the RCEP, the Committee will drive RCEP for implementation, matchmaking for the international trade cooperation between Chongqing and RCEP members," Yang said.
According to Huo Jiasong, Secretary of the Board of New International Land-Sea Trade Corridor Operation Co., Ltd. and General Manager of New International Land-Sea Trade Corridor Operation Gansu Co., Ltd., the RCEP will absolutely stimulate trade between China and the members, especially with ASEAN countries. It will also be easier for their company to organize the supply of goods.
"Under the RCEP, tariff costs for railway transportation will also be eliminated. If so, we will obtain more advantages in transportation efficiency and cost, becoming more competitive," the head from YUXINOU (Chongqing) Logistics Co., Ltd. said.
On the other hand, the RCEP will be significant for Chongqing to introduce more overseas-funded enterprises and projects.
An official from the Foreign Investment Department of Chongqing Municipal Commission of Commerce points out that, with its thorough implementation, the RCEP will make it easier for Chongqing to attract investments from Japan, South Korea, Singapore, and other countries due to the city's close contact with these countries.