China says it is ready to implement RCEP

“China has completed national preparations for the implementation of the Regional Comprehensive Economic Partnership Agreement.” (Regional Comprehensive Economic Partnership, RCEP), said Ren Hongbin, Vice Minister of Commerce of China.

This agreement will enter into force on January 1, 2022 and should allow the 15 signatories to trade freely. The RCEP is also the most important agreement in the world that was signed in November 2020.

Its members include China, Japan, South Korea, Australia, New Zealand and 10 other Asian countries. The total population, size of the economy and the volume of trade in the fifteen member states account for 30% of the world total.

China took the initiative to ratify the agreement and submit the instrument of ratification to the Secretariat of the Association of Southeast Asian Nations (ASEAN) in 2021.

For Ren Hongbin, China is ready to fulfill a total of 701 binding obligations under the agreement. because according to him, “The implementation of the agreement marks a new stage in China’s opening-up.”

“Companies will be able to take advantage of the benefits of RCEP from the beginning of next year.”New Zealand Minister of Trade and Export Growth Phil Twyford said. “RCEP will strengthen Australia’s trade relations with the Association of Southeast Asian Nations (ASEAN)”Australian Foreign Minister Marise Payne and Trade, Tourism and Investment Minister Dan Tehan said in a joint statement.

Furthermore it, The 15 RCEP member countries have 2.27 billion people, a GDP of $26 trillion and total exports of $5.2 trillion.which represents about 30% of the world total.

In 2020, the total value of China’s trade with the other 14 members of the RCEP reached 10,220 billion yuan (1416 billion euros), or 31.7% of China’s total imports and exports during this period.

Between January and November 2021, The total value of China’s imports and exports to and from 14 other RCEP member countries amounted to 10.960 billion yuan, or 31% of the total value of China’s foreign trade.

According to the General Administration of Customs, China has taken steps to further facilitate trade with other RCEP members, including informing companies of relevant import and export procedures and promoting mutual recognition of Authorized Economic Operators (AEOs) with five RCEP members.

The Chinese administration indicated that the AEO system, launched by the World Customs Organization, aims to facilitate the clearance of companies through certification by customs authorities of companies with a high level of legal compliance and security, as well as a high credit standing.

China has signed reciprocal AEO agreements with five of the 10 RCEP members who have already adopted the AEO system, while seeking similar agreements with the other five, according to the General Administration of Customs.