The world’s largest free trade agreement comes into force from the beginning of 2022

RCEP come into effect

With just being ratified by Australia and New Zealand, RCEP – the world’s largest free trade agreement – will come into effect from January 1, 2022.

In a statement released on November 3, New Zealand Trade and Export Growth Minister Phil Twyford said the country had ratified the Regional Comprehensive Economic Partnership (RCEP).

Yesterday (November 2), Australia’s Trade Minister Dan Tehan also announced that the country had ratified the RCEP.

RCEP includes 10 ASEAN member states and 5 other countries: Australia, China, Japan, South Korea and New Zealand. Currently, the agreement has been ratified by 6 ASEAN members and non-ASEAN countries, namely China and Japan, in April and June 2021, respectively.

According to regulations, RCEP takes effect 60 days after at least 6 ASEAN members and 3 non-ASEAN members ratify. Thus, the ratification of RCEP by New Zealand and Australia has enabled the world’s largest free trade agreement to take effect from January 2022

According to Minister Phil Twyford, RCEP will bring many great economic benefits, new market access for New Zealand businesses from the beginning of next year.

Meanwhile, Minister Dan Tehan said that New Zealand and Australia simultaneously ratified the ASEAN-led RCEP, demonstrating the two countries’ strong ties with ASEAN.

He added that Australia’s ratification of the RCEP did not change its serious concerns about the situation in Myanmar and pledged to work with ASEAN countries to find a peaceful solution for this country.

RCEP was signed in November 2020 after 8 years of negotiations. This agreement is the largest free trade agreement in the world with a market accounting for nearly 30% of the global population (about 2.2 billion people), accounting for nearly 30% of global GDP and 50% of total exports of the country. New Zealand.

Under the commitment, RCEP will eliminate tariffs on 91% of goods, and standardize regulations on investment, intellectual property and e-commerce.

RCEP is expected to revive supply chains in the region and promote more efficient supply chains for businesses. The agreement also establishes a stable and long-term export market for ASEAN countries in the context of recent unstable supply chains.

The implementation of RCEP also creates a binding legal framework in the region on trade policy, investment, intellectual property, e-commerce… and creates a level playing field in the region.

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