JAKARTA, 1 January 2022 – The Regional Comprehensive Economic Partnership (RCEP) Agreement enters into force today for Australia, Brunei Darussalam, Cambodia, China, Japan, Lao PDR, New Zealand, Singapore, Thailand and Viet Nam, paving the way for the creation of the world’s largest free trade area.
According to data by the World Bank, the agreement would cover 2.3 billion people or 30% of the world’s population, contribute US$ 25.8 trillion about 30% of global GDP, and account for US$ 12.7 trillion, over a quarter of global trade in goods and services.
Thirty-one percent of global FDI inflows RCEP Agreement will also enter into force on 1 February 2022 for the Republic of Korea. The remaining signatory States will enter into force 60 days after the deposit of their respective instrument of ratification, acceptance, or approval of the Secretary-General of ASEAN as the depositary of the RCEP Agreement.
The entry into force of the RCEP Agreement is a manifestation of the region’s resolve to keep markets open; strengthen regional economic integration; support an open, free, fair, inclusive, and rules-based multilateral trading system; and, ultimately, contribute to global post-pandemic recovery efforts.
Through new market access commitments and streamlined, modern rules and disciplines that facilitate trade and investment, RCEP promises to deliver new business and employment opportunities, strengthen supply chains in the region, and promote the participation of micro, small and medium enterprises into the regional value chains and production hubs.
The ASEAN Secretariat remains committed to support the RCEP process in ensuring its effective and efficient implementation.