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Chongqing Sees Positive Effect of RCEP After Over 100 Days of Progress

By KENNY DONG|Apr 21,2022

Chongqing - As global participants reap benefits from the Regional Comprehensive Economic Partnership (RCEP), the world’s largest trade deal and a big boost for free trade, Chongqing sees the positive effects on local players for international trade.

Chongqing Polycomp international corporation, a fiberglass manufacturer, has saved more than 190 thousand yuan since the enforcement of RCEP.

According to Liang Xinchun, a director at the company, part of their production materials are imported from Kobe, Japan, to Guoyuan Port Chongqing, and the tariff drops from 6.5% to zero under the RCEP.

“The tax rebates alleviated the pressure of increased logistics costs amid the pandemic and allowed the company more R&D funds,” Liang said.

“Some of our products are exported to Asia, Europe, America, and Middle Asia. The agreement brings us advantages to expand the overseas market as well,” Liang added. With the Certificate of Origin, the purchase price declines due to lower tariffs between member countries, “and this makes us more competitive price-wise.”

The first imported goods benefiting from the RCEP in Chongqing arrived at Guoyuan Port from Japan earlier in March. (Photo provided to iChongqing)

Under the RCEP, the Certificate of Origin is the document needed for companies to enjoy preferential tariffs. More than 90 percent of goods traded between member countries will eventually enjoy zero tariffs by an immediate or gradual cut in ten years.

Up to April 10, a hundred days since the RCEP came into effect, a total of 284 certificates of origin have been issued by local authorities in Chongqing.

According to Chongqing Custom District, Japan is currently the main destination of export under the RCEP, and most goods are salted vegetables, chemicals, and fuel tanks.

RCEP covers about 30 percent of the global population, gross domestic product, and trade volume. That includes ten ASEAN members, China, Japan, South Korea, Australia, and New Zealand.

Trade between Chongqing and 14 other member countries under the RCEP was 236.8 billion yuan in 2021, a year-on-year growth of 15.9 percent and accounting for 29.6 percent of the city's total foreign trade, statistics show.

The combo of supportive policy and a developed logistics system is what takes the inland city one step closer to the global market.

According to Qin Ke, vice president of Chongqing Guoyuan Port International Logistics Hub Construction and Development Co., Ltd., with RCEP reducing costs for companies in member countries, the trade volume is rising and brings significant growth in logistics demand.

Guoyuan Port enabled alternative logistics solutions for companies to reduce logistics risk amid pandemic, with its transportation system integrating waterway, railway, road, and airway, Qin said.

Liangjiang New Area is turning Guoyuan Port into a national logistics hub, which facilitates the development of an opening economy. (Photo/Lan Tian, Liangjiang New Area Media Center)

Located in Liangjiang New Area, Guoyuan Port is China’s largest inland river logistic port with routes linking major ports globally. Since RCEP took effect, new logistics passages under the New International Land-Sea Trade Corridor have been operated to connect Hanoi, Vietnam, and Indochina.

The port will better perform its function and assist local companies in leveraging the RCEP and exploring domestic and international markets, Qin added.

(This article was written by Guo Shuyu, Liangjiang New Area Media Center)

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