RCEP agreement takes effect on January 1, 2022
On January 1, 2022, the Regional Comprehensive Economic Partnership (RCEP) came into effect.
Initiated by ASEAN, this agreement took 8 years and was signed by 15 members including China, Japan, South Korea, Australia, New Zealand and ten ASEAN countries. The free trade zone has officially set sail. After the negotiation of the free trade agreement, it will cover nearly half of the world's population and nearly one-third of the world's trade volume, making it the free trade area with the largest population, the most diverse membership and the most dynamic development in the world.
After the agreement takes effect, member states will lower tariffs and open up their markets. 30% of goods in Cambodia, Laos and Myanmar enjoy zero-tariff treatment, and 65% of goods in other member countries enjoy zero-tariff treatment. Each country has opened up markets in at least 100 fields. It also marks the first free trade agreement signed between China and Japan, and bilateral trade between China and Japan is expected to usher in a large increase.
Before the signing, the ten ASEAN countries signed agreements with five countries respectively. The agreement rules of each country are different from each other, there are certain tariff and non-tariff barriers, and the level of openness to trade in goods is relatively low. In addition, the new crown epidemic has affected trade and investment among member countries. After signing, the "10+5" model, integrated and established new economic links, unified rules within the region, and cut tariffs and non-tariff barriers. The level of openness to trade in goods has reached more than 90%,
The signing of RCEP also has great influence on the traditional Chinese medicine industry. Most of the raw materials of medicinal materials in China, such as angelica, Codonopsis, chrysanthemum, astragalus, goji berry, etc., have been reduced from the previous benchmark tax rate of 6% to 0 in the first year. This is not only beneficial for enterprises to reduce costs, but also better for members The growth of domestic import and export trade volume of Chinese herbal medicines.
