Malaysia confirms China-backed RCEP free trade pact comes into force, expects US$200 million boost
- The Regional Comprehensive Economic Partnership (RCEP) is the world’s largest free trade agreement
- It covers nearly a third of the global population and about 30 per cent of its global gross domestic product
.JPG?itok=J8tgfPmW&v=1659948715)
The Regional Comprehensive Economic Partnership (RCEP) free trade agreement entered into force in Malaysia from Friday, the country’s trade ministry said.
Business communities, from large to small scale entrepreneurs, are encouraged to take advantage of the vast investment opportunities and greater participation in regional and global value chains presented by this mega-trade agreement
“Other advantages to be gained include the further liberalisation of trade, encompassing removal of non-tariff barriers, increased trade facilitation, removal of barriers to services sector, as well as enhancement of business environment through regulations relating to intellectual property protection, government procurement practices and e-commerce,” the ministry said in a statement on Friday, according to Malaysian national news agency Bernama.
“Among the Asean countries, Malaysia is expected to be the largest beneficiary of the agreement in terms of gains in exports, with a projected US$200 million increase.
“Noteworthy too is the provision of the special and differential treatment accorded to least-developed members, which would be instrumental in advancing equitable economic development.
“Business communities, from large to small scale entrepreneurs, are encouraged to take advantage of the vast investment opportunities and greater participation in regional and global value chains presented by this mega-trade agreement.”
RCEP is a free-trade agreement between the 10 Association of Southeast Asian Nations (Asean) members plus Australia, China, Japan, New Zealand and South Korea.
The deal took effect in Australia, Brunei, Cambodia, China, Japan, Laos, New Zealand, Thailand, Singapore and Vietnam on January 1. South Korea followed on February 1
RCEP is the world’s largest free trade agreement, as it covers nearly a third of the global population and about 30 per cent of its global gross domestic product.
Tariffs on more than 65 per cent of trade in goods are expected to immediately reach zero under the regional agreement, and that figure is expected to rise to around 90 per cent over 20 years.
Additional reporting by Reuters
