The Comprehensive Regional Economic Partnership Agreement (RCEP) is expected to significantly promote the overall growth of the region’s economy, trade and investment and contribute to the growth of world trade and welfare, according to a report by Chinese Academy of International Trade and Economic Cooperation.
The report indicates that more than 90 percent of merchandise trade in the region will eventually benefit from zero tariffs after the entry into force of the RCEP. By 2035, the RCEP will lead to an increase in the region’s real GDP, exports and imports of 0.86%, 18.30% and 9.63%, respectively, compared to the baseline scenario, and the cumulative increase in exports and imports will reach $ 857.1 billion and $ 983.7. billion, respectively.
Among RCEP members, the Association of Southeast Asian Nations (ASEAN) countries are expected to benefit the most at the macroeconomic level, with real GDP, imports and exports, with investment all showing growth. substantial. China, Japan, South Korea, Australia and New Zealand show more significant increases in total economic well-being, according to the report.
By 2035, ASEAN’s aggregate GDP growth rate will increase by 4.47%. Among them, Cambodia, the Philippines, Thailand and Vietnam will benefit greatly from the GDP, with a cumulative growth rate of 7.98%, 7.04%, 6.38% and 6.33% respectively.
In terms of the growth rate of imports and exports, among ASEAN members, the cumulative growth rates of the Philippines, Cambodia, Thailand and Vietnam will increase by more than 20%. Meanwhile, among non-ASEAN members, South Korea’s cumulative increase in exports is the largest, while China’s cumulative increase in imports is the largest, according to the report.
As for China, according to the report, by 2035, RCEP will increase China’s real GDP, exports and imports will increase by 0.35%, 7.59% and 10.55% respectively, and the cumulative increase in exports and imports will each reach $ 315.4 billion and $ 306.8 billion.
RCEP will also provide more jobs for ASEAN countries, increase wages and facilitate capital inflows into the region.
China ready to implement RCEP: MOFCOM