The Australian government, led by Prime Minister Scott Morrison, has secured domestic approval to implement the Regional Comprehensive Economic Partnership Agreement (RCEP) to benefit Australian farmers and businesses.
The RCEP is a free trade agreement between Australia and 14 other Indo-Pacific countries, including Brunei, Cambodia, China, Indonesia, Japan, Laos, Malaysia, Myanmar, New Zealand, the Philippines, Singapore, South Korea, Thailand, and Vietnam.
It was first introduced in November 2011 during the 19th Association of Southeast Asian Nations (ASEAN) meeting. However, negotiations for the RCEP began in November 2012 in Cambodia; it was signed on 15 November 2020 in Vietnam. As of 2020, the total Gross Domestic Product (GDP) of all member states amounted to $38.81 trillion, making up 30% of the world GDP.
The agreement includes trade in goods, services, investment, economic and technical cooperation, new rules for electronic commerce, intellectual property, government procurement, competition, and small and medium-sized enterprises.
On Thursday, Australian Minister for Trade, Tourism, and Investment Dan Tehan reaffirmed that the RCEP would strengthen and promote the island nation’s existing free trade agreements with countries in the Indo-Pacific region.
Tehan said the RCEP would be the most significant free trade agreement worldwide once it’s implemented. He added, “This agreement will make it easier for businesses and investors to operate throughout the Indo-Pacific by delivering greater integration of value chains and shared rules of origin, which ultimately will lead to more jobs, opportunities and economic growth in Australia.”
Furthermore, he said the agreement would make trading easier for Australian traders with a single set of rules and procedures that would allow traders to utilise preferential tariff outcomes across the region. Currently, the Australian traders choose from 10 different free trade agreements between 15 regional countries. The new rules support contemporary production and logistics patterns, making it more attractive for food processors in the region to source primary produce from Australia.
Tehan also reiterated the Australian government’s commitment to promoting free trade, as the deal is expected to bolster economic growth, improve living standards, and help develop cooperation and trust between trading partners. He further acknowledged the last remaining steps for Australia to ratify the agreement. “Our Government has overseen the size of our trading markets covered by free trade agreements grow from 27 per cent to around 70 per cent—that equates to preferential access to an additional 2 billion customers,” Tehan said.
The agreement is likely to come into force early next year.
Australia Passes Legislation for RCEP, Looks to Expand Footprint in Indo-Pacific
Australia secured passage for the implementation of the Regional Comprehensive Economic Partnership, which aims to boost trade between Australia and 14 other Indo-Pacific nations.
October 22, 2021
Australia's Minister for Trade, Tourism, and Investment Dan Tehan SOURCE: THE CONVERSATION