Singapore corroborates participation in RCEP

Singapore corroborates participation in RCEP

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Singapore ratified the Regional Comprehensive Economic Partnership (RCEP) agreement on Friday.

Becoming the first participating country to do so, the Ministry of Trade and Industry said in a press release.

The RCEP is the world’s largest free trade agreement, bringing together the 10 ASEAN economies as well as Australia, China, Japan, New Zealand and South Korea.

“Singapore’s expeditious ratification of the Regional Comprehensive Economic Partnership agreement signals Singapore’s strong commitment to strengthening our trade and economic linkages with our partners, for the benefit of our businesses and people,” said Minister for Trade and Industry Chan Chun Sing.

“We look forward to our fellow RCEP Participating Countries doing likewise, to expedite the entry into force of the agreement.”

Singapore has deposited its instrument of ratification with the Secretary-General of ASEAN, said MTI.

The RCEP was signed by the 15 participating countries in November last year.

Prime Minister Lee Hsien Loong said then: “The RCEP is a major step forward for the world, at a time when multilateralism is losing ground and global growth is slowing.”

The RCEP deal establishes a mutually beneficial economic partnership that builds on existing ASEAN agreements with the bloc’s five FTA partners, said MTI on Friday.

Comprising about 30% of global gross domestic product and close to a third of the world’s population.

The deal will complement Singapore’s existing network of FTAs and boost trade and investment flows, the ministry said.

Businesses can expect to benefit from tariff elimination of about 92% on average

As well as streamlined rules of origin for greater flexibility to tap on preferential market access benefits.

The RCEP agreement will enter into force after six ASEAN member states and three ASEAN FTA partners have ratified it.

The participating countries are targeting entry into force on 2022, said MTI.

Source: Channel News Asia .

RCEP to promote ties between Indonesia and China

RCEP to promote ties between Indonesia and China

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The Regional Comprehensive Economic Partnership (RCEP) is expected to play a large role in promoting economic and trade relations between Indonesia and China, Indonesian experts said.

“We’ve just fallen into recession and if RCEP is successful in improving economic relations, Indonesia will perhaps be able to climb out of recession through cooperation with China and other bigger economies,” Indonesian economic expert Nadhila Ichsan said.

According to Statistics Indonesia (BPS), the state’s economic growth experienced a 3.49 percent contraction in the third quarter of 2020, which brought the country’s economy to a recession for two consecutive quarters. In quarter two, Indonesia’s economy grew at a rate of -5.32 percent.

Although the country’s economy continued to contract, there was a significant rebound in exports, especially those to China. The data of BPS showed Indonesia’s largest non-oil and gas exports in October 2020 were to China.

Indonesian Finance Minister Sri Mulyani Indrawati at a press conference said, “The worst is over” and “All components of economic growth, both from the expenditure side and the production side, have increased.”

Murpin Josua Sembiring, an economic scholar, opined that the benefits from RCEP include creating opportunities for the Indonesian industry to take advantage of regional value chains, increasing high-quality telecommunication services, and triggering Indonesian investors to invest in the RCEP area.

RCEP will also greatly give benefits to financial service providers, create opportunities to increase economic capacity and the ability of small and medium-sized enterprises, boost intellectual property, expand digital trade in the region, and extend market access for Indonesian export products, he added.

The RCEP

Fifteen Asia-Pacific nations signed the RCEP, a mega free trade deal, on Sunday as they concluded an annual summit of Southeast Asian leaders and their regional partners, held virtually this year due to the pandemic. 

The Regional Comprehensive Economic Partnership is the world’s biggest trade agreement. It will progressively lower tariffs across many areas in the coming years.