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.

Regional Comprehensive Economic Partnership (RCEP)

Kyodo

Published: 12:00pm, 3 Nov, 2021

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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.

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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.

It also aims to promote optimisation of the supply chains within the free-trade zone, which accounts for about 30 per cent of the world’s output, trade and population.

The Japanese government has estimated the pact could lift the gross domestic product of the world’s third-largest economy by about 2.7 per cent.

RCEP will strengthen Australia’s trade relationship with the Association of Southeast Asian States (Asean) and signal our commitment to Asean-led regional economic architecture

Dan Tehan

RCEP groups the 10 member states of the Association of Southeast Asian Nations – Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam – plus Australia, China, Japan, New Zealand and South Korea.

“Australia has ratified the Regional Comprehensive Economic Partnership Agreement (RCEP), ensuring that our farmers and businesses are able to access the benefits of what will be the world’s the largest free trade agreement,” added Tehan.

“RCEP will strengthen Australia’s trade relationship with the Association of Southeast Asian States (Asean) and signal our commitment to ASEAN-led regional economic architecture.”

Additional reporting by Reuters

This article appeared in the South China Morning Post print edition as: RCEP deal to take effect in January, Australia says