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15-member RCEP trade deal to take effect in January
The 15-member RCEP -- the world's largest free trade agreement despite the absence of the United States -- will be Japan's first economic partnership agreement involving both China and South Korea.
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Virtual summit: Leaders of ASEAN and its strategic partners are seen on a screen as they attend the fourth Regional Comprehensive Economic Partnership Summit as part of the 37th ASEAN Summit held online from Hanoi on Nov. 15. (Reuters/Kham)
T
he Regional Comprehensive Economic Partnership trade agreement will take effect on Jan. 1, according to the Australian government, with the deal aimed at facilitating trade liberalization 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 economic partnership 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 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, which includes the 10-member Association of Southeast Asian Nations, is designed to remove tariffs on 91 percent of goods, and standardize rules on investment, intellectual property and e-commerce among other trade practices.
It also aims to promote optimization of the supply chains within the free trade zone, which accounts for about 30 percent of the world's output, trade and population.
With the entry into force of the RCEP agreement, Japanese companies operating internationally are expected to improve their business efficiency due to reduced tariffs and unified rules.
