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RCEP boosts Asia-Pacific trade: Media

chinadaily.com.cn | Updated: 2022-01-05 17:19
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A gantry crane loads containers onto a freight train in Nanning international railway port in South China's Guangxi Zhuang autonomous region, Dec 31, 2021. [Photo/Xinhua]

The Regional Comprehensive Economic Partnership agreement, the world's largest trade deal, entered into force on Saturday.

It has opened a new chapter of regional integration and common prosperity in the Asia-Pacific region, the Jakarta Post reported. It rises as a modern, comprehensive, high-quality and mutually beneficial mega-free trade agreement, the newspaper said, adding it also prescribes a common set of rules and standards, including accumulative rules of origin, lowered trade barriers and streamlined processes.

The RCEP appeals to other developing countries because it reduces barriers to trade in farm goods, manufactured goods and components, which make up most of their exports, the Associated Press said.

"RCEP will uplift GDP and lower poverty incidence. It will open up more market access for exports and widen sourcing of needed inputs that will improve competitiveness of the manufacturing sector and exporters," the AP quoted Philippine Trade Secretary Ramon Lopez as saying.

The pact will help facilitate trade liberalization and economic integration in the Asia-Pacific and is expected to serve as a key engine of trade and investment, as well as promote a more inclusive economic recovery in ASEAN in 2022 and beyond, the Bangkok Post said in an article.

One practical effect of RCEP coming into force is businesses and supply chain partners "will be able to enjoy preferential treatment for exports," Nikkei Asia said quoting Locknie Hsu, a professor at Singapore Management University. "This can significantly enhance regional economic connectivity."

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