The Regional Comprehensive Economic Partnership (RCEP) is a free trade agreement between ASEAN and five Asia-Pacific nations of Australia, China, Japan, Korea, and New Zealand. Together, these RCEP participating countries account for about 30% of the global gross domestic product (GDP) and 30% of the world’s population (2,252 million people). The RCEP Agreement has 4 significant features as followed; 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 is 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 the market and employment opportunities to 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.

On 15 November 2020, Thailand attended the 37th ASEAN Summit and signed the Regional Comprehensive Economic Partnership (RCEP) with 15 Trade Ministers of member countries. Thailand will bring the RCEP to the parliament to consider giving the approval ratify, expected to take immediate effect in the mid-2021. The RCEP will provide Thailand benefits such as reducing tariffs on goods, services, and investment. It especially brings advantages to agricultural products such as cassava, rubber, and other related products, including food, as well as industrial products, including electrical equipment, plastics, and automotive parts. Moreover, the RECP also provides benefits to the service sector.

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