Regional Comprehensive Economic Partnership (RCEP).

         The Regional Comprehensive Economic Partnership (RCEP) is the 14th Free Trade Agreement (FTA) of Thailand, with 15 members including 10 ASEAN countries, Japan, South Korea, China, Australia, and New Zealand.  It is considered a large commercial contract covering 30.2% of the world’s population, effective from January 1, 2022.

         RECP has developed the concept of ASEAN+3 and ASEAN+6, which is ASEAN’s strategy under the AEC Blueprint where ASEAN wants to maintain its role as a central (ASEAN Centrality) to drive greater economic integration in the region.

         The RCEP advances trade cooperation between Member States by making it easier for them to fulfill their obligations to benefit from exemptions and lower customs tariffs, such as reducing the time it takes to clear customs to 6–48 hours, implementing digital systems to eliminate needless paperwork, and expanding the scope of trade liberalization for the first time in Plus 5.

         Since the RCEP agreement is the first free trade agreement that some member nations, including China and Japan, have together and has different development levels than the other member countries, it prevents member countries from opening their markets to other member countries equitably. As a result, importing the same product may be advantageous to several importing nations. The RCEP therefore establishes additional conditions to determine whether an exported product can be originated in the exporting country in order to avoid evading higher tariffs of one exporting country.     

         RCEP member countries with different open markets are comprised of seven countries: China, Japan, Korea, Indonesia, Philippines, Thailand, and Vietnam.

         Even though the RECP agreement will broaden the framework for trade cooperation, on the other hand, it will draw investment from both domestic and international investors who see competitive advantages and want to establish a production base in Thailand, particularly in industries where Thailand has a production and export advantage. 

        RCEP is another important factor that helps drive economic growth, trade, and sector investment. Therefore, the cooperation of all sectors to create an investment atmosphere that is in line with the benefits arising from this agreement will help drive Thailand to the utmost benefit.

Source: DEPARTMENT OF FOREIGN TRADE
Tel: +66 2-528-7500-29