The Regional Comprehensive Economic Partnership (RCEP) is a free trade agreement between ASEAN and the five Asia-Pacific nations of Australia, China, Japan, Korea, and New Zealand. Together, these RCEP participating countries account for about 30% of the world’s gross domestic product (GDP) and 30% of the world’s population (2,252 million people). The RCEP Agreement has 4 significant features, as follows: 1) Modern: to improve the scope of the former free trade agreement between ASEAN+1 and five Asia-Pacific countries and to consider the changes and the actual trade patterns; 2) Comprehensive: comprehend both in scope and depth of commitment with special provisions covering trade in goods, services, regulations, and legal issues; besides, the RCEP achieves free trade in goods, services, and investment; 3) High-quality: the RCEP agreement comprises provisions, which are beyond the existing provisions of the ASEAN +1 Agreement and recognize the different levels of development and economic needs of each country; and 4) Mutually beneficial: member countries will receive mutual benefits because the RCEP agreement consists of countries with varying levels of development and it is designed to be appropriate and flexible for member countries.

The RCEP agreement will be mutually beneficial to facilitate the expansion of regional trade and investment and contribute to global economic growth and development. Furthermore, it will bring about market and employment opportunities for businesses and people in the region. The RCEP Agreement will work alongside and support an open, inclusive, and rules-based multilateral trading system with the 20 significant chapters as followed. 1) Initial Provisions and General Definitions; 2) Trade in Goods; 3) Rules of Origin (ROO); 4) Customs Procedures and Trade Facilitation (CPTF); 5) Sanitary and Phytosanitary Measures (SPS); 6) Standards, Technical Regulations, and Conformity Assessment Procedures (STRACAP); 7) Trade Remedies; 8) Trade in Services; 9) Temporary Movement of Natural Persons (MNP); 10) Investment; 11) Intellectual Property; 12) Electronic Commerce; 13) Competition; 14) Small and Medium Enterprises (SMEs); 15) Economic and Technical Cooperation (ECOTECH); 16) Government Procurement; 17) General Provisions and Exceptions; 18) Institutional Provisions; 19) Dispute Settlement; 20) Final Provisions.        

The Regional Comprehensive Economic Partnership (RCEP) comes into force on January 1, 2022, after at least six members of ASEAN and three non-ASEAN nations have ratified the agreement. Thailand would get various benefits from the RCEP agreement. For example, Thailand has 39,366 goods that would benefit from the duty reduction. Thailand has 29,891 goods that should enjoy zero tariffs immediately after the pact's implementation. Furthermore, China, Japan, and South Korea will reduce and cut tariffs on Thai goods exports in addition to the existing Free Trade Agreement (FTA), such as fresh and processed fruits, fishery products, fruit juices, synthetic rubber and rubber products, automobiles and components, plastics, chemicals, electrical components, computers and its parts, etc. This is also an opportunity for Thailand to expand its service business to RCEP countries' members in various sectors such as construction, retail, health, film and entertainment, etc. However, under the RCEP Agreement, rubber processing products are still not considered for tax reductions in exports to China because it is listed on a sensitive list.

In conclusion, the Regional Comprehensive Economic Partnership (RCEP) will build mutual benefits among member countries and will become the world’s largest free trade area with great value. It is expected to produce holistic strategic advantages to the rubber industry and Thailand.

Mr.Chaiyos Sincharoenkul

President

The Thai Rubber Association