RCEP trade deal reaches ‘milestone’ after ratification by Australia and New Zealand, will take effect in January

The Regional Comprehensive Economic Partnership (RCEP) trade agreement will take effect at the start of January

RCEP groups the 10 member states of the Association of Southeast Asian Nations (Asean) plus Australia, China, Japan, New Zealand and South Korea.

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The Regional Comprehensive Economic Partnership (RCEP) trade agreement was signed in November last year. Photo: Xinhua

Published: 12:00pm, 3 Nov 2021Updated: 9:55pm, 3 Nov 2021

The Regional Comprehensive Economic Partnership (RCEP) trade agreement will take effect at the start of January, according to the Australian government, with the deal to facilitate trade liberalisation and economic integration in Asia and the Pacific.

The 15-member RCEP – the world’s largest free trade agreement despite the absence of the United States – will be Japan’s first trade agreement involving both China and South Korea.

The pact can enter into force now that Australia and New Zealand have ratified it, Dan Tehan, Australia’s minister for trade, tourism and investment, said in a statement released on Tuesday.

“RCEP will enter into force 60 days after ratification by at least six Asean states and at least three non-Asean states. That milestone was reached on 2 November 2021 with ratification by Australia and New Zealand, which will pave the way for RCEP to enter into force on 1 January 2022,” the statement said.

RCEP is designed to remove tariffs on 91 per cent of goods, and standardise rules on investment, intellectual property and e-commerce among other trade practices.

“Businesses will be able to take advantage of RCEP’s opportunities from early next year,” Phil Twyford, New Zealand’s minister of state for trade and export growth, said in a statement on Wednesday.