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Projects signed during RCEP forum to foster cooperation

By Xu Xiaoxuan: 0 Comment(s)Print E-mail China.org.cn, June 30, 2023

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The Regional Comprehensive Economic Partnership (RCEP) agreement took effect on June 2 for the Philippines, meaning the pact is now active for all 15 members.

A slew of projects are signed between enterprises from RCEP members during the 2023 High-Level Forum for RCEP Economic and Trade Cooperation on June 29, 2023. [Photo courtesy of China Chamber of International Commerce]

The world's largest free trade pact witnessed further progress during the 2023 High-Level Forum for RCEP Economic and Trade Cooperation held in Qingdao, east China's Shandong province. During the forum, a slew of projects were signed between enterprises from member states, spanning various sectors such as construction, aviation charter service, cultural tourism, healthcare, and talent training, aiming for broader and deeper cooperation.

Ren Hongbin, chairman of the China Council for the Promotion of International Trade and the China Chamber of International Commerce, highlighted the increasing trade between RCEP members. He observed that the Asia-Pacific region had become a prominent area for global trade and investment.

Data showed that in 2022, trade between China and other RCEP members increased 7.5% year on year to 12.95 trillion yuan ($1.79 trillion), while their investment in China, in actual use, rose 23.1% to $23.53 billion.

Cambodian Ambassador to China, Khek Caimealy Sysoda, stressed that in the face of global economic uncertainties, the RCEP agreement has delivered tangible benefits to regional economic and trade cooperation through comprehensive measures, including reducing trade costs, diminishing or eliminating non-tariff barriers, and promoting the integration of regional industrial and supply chains.

She added that trade between China and Cambodia rose by 17.5% year on year to around $16 billion, and consistent progress has been made in bilateral cooperation in fields like agriculture, textiles and infrastructure.

Glenn G. Penaranda, assistant secretary of the Department of Trade and Industry of the Philippines, noted that the Philippines views RCEP as a catalyst for economic development. It provides not only enhanced market access for their key products but also a platform to attract more investment in essential sectors such as manufacturing, financial services, game development, and e-commerce. He expressed that RCEP can also assist the country in fostering a more robust and beneficial partnership with China based on the Belt and Road Initiative.

Ou Boqian, secretary-general of the Trilateral Cooperation Secretariat, emphasized that the RCEP agreement is the first free trade pact that links China, Japan, and South Korea, significantly contributing to the development of these three countries. She proposed that the three parties and other RCEP members adhere to multilateralism, enhance the division of labor, and broaden collaboration in the green economy, blue economy, digital economy, and other sectors.

ASEAN Secretary-General Kao Kim Hourn underscored that the benefits of the RCEP agreement have extended beyond tariff liberalization, as it has also simplified customs procedures, standardized rules of origin, and reduced transaction costs among members. He also urged feedback from businesses in utilizing the RCEP agreement to address on-the-ground challenges.

Zhou Yi, who oversees customs and global trade at Deloitte China, mentioned that the RCEP has stimulated the synergy of supply chains and the integration of resources in the region. Yet, enterprises still need to familiarize themselves with specific local rules and institutions for smoother operations.

During the forum, the Qingdao Initiative of China's Business Community on Promoting the Construction of the RCEP Mechanism and Sharing the Results of Regional Cooperation was launched, aiming to foster broader, deeper, and higher-level collaboration among member countries.