Impact Of RCEP Signing On Our Company
RCEP is the regional comprehensive economic partnership, It was initiated by ASEAN in 2012. All members include China, Japan, South Korea, Australia, New Zealand and ASEAN countries, and a total of 15 parties formulated the agreement through eight years. The leaders' meeting of the fourth regional comprehensive economic partnership (RCEP) was held by video on November 15, 2020. After the meeting, ten ASEAN countries and 15 Asia Pacific countries including China, Japan, South Korea, Australia and New Zealand formally signed RCEP. The signing of the RCEP marks the official launch of the free trade zone with the largest population, the largest economic and trade scale and the most potential for development in the world.
The ASEAN countries include Indonesia, Myanmar, Vietnam, Thailand, the Philippines, Cambodia, Laos, Brunei, Singapore and Malaysia. According to the data of the Ministry of Commerce, in 2019, the total population of 15 RCEP member countries will reach 2.27 billion, accounting for about 30% of the world's population, the total GDP will reach 26 trillion US dollars, accounting for 30% of the total global economy, and the total intra regional trade volume will reach 10.4 trillion US dollars, accounting for 27.4% of the global total. The establishment of RCEP free trade zone means that about one third of the global economy will form an integrated market. RCEP includes the main countries in East Asia and will inject strong impetus into regional and global economic growth.
The members of RCEP promise to reduce tariffs, open markets and reduce standard barriers, sending a strong signal of opposing unilateralism and protectionism, and injecting strong positive energy into the global multilateral trading system and world economic recovery. Different from the uncertainty of protectionism in North American regional economic cooperation, RCEP model is more free, open, convenient, inclusive and shared. RCEP is not only the largest free trade agreement in the world, but also a comprehensive, modern, high-quality and mutually beneficial FTA. On the whole, the number of zero tariff products in trade exceeded 90%.
The RCEP agreement consists of a preamble and 20 chapters (including: initial provisions and general definitions, trade in goods, rules of origin, customs procedures and trade facilitation, sanitary and phytosanitary measures, standards, technical regulations and conformity assessment procedures, trade remedies, trade in services, temporary movement of natural persons, investment, intellectual property rights, e-commerce, competition, small and medium-sized enterprises, and economic and technological cooperation It is composed of four parts: government procurement, general terms and exceptions, institutional provisions, dispute settlement and final provisions chapter), four attachments to the market access commitment table (including: tariff commitment form, service specific commitment form, investment retention and non conformity measures commitment form, and specific commitment form of temporary movement of natural persons).
Yihua Pharma Pack specializes in researching, developing and producing pharmaceutical products. The main products have pharma glass vials, glass ampoules, glass test tubes, borosilicate glass tubings, glass pre-filled syringes, flip off caps, aluminum seals, pharma rubber stoppers.In export share of Yihua, RCEP member countries account for about 27%. It probably exceed 35% or even higher in the future. Under the unfavourable situation caused by COVID-19 in the world, especially for the growth of export oriented enterprises like Yihua, RCEP's signature expands our export space and provides strong confidence in our growth. It is mainly reflected in the following aspects:
1. The unified rules within the region have been formed, which makes the export business easier to operate and improves the efficiency of export commodities.
2. Zero tariff reduces the cost of imports in the region, making Chinese goods more competitive in the region and the world.
3. It reduces the uncertainty risk of goods export operation.
4. Business travel policies,such as visa free and landing visa, are more conducive to the communication between us and customers. It is more convenient for us to have face-to-face discussions with customers, and it is easier to establish a business relationship of mutual trust.
We are looking forward to the maintaining long-term and stable implementation of RCEP.
Contact Person: Ms. Sophia