SINGAPORE: The Regional Comprehensive Economic Partnership RCEP, the world's largest free trade agreement involving 15 countries including Singapore, entered into force on Saturday January 1. RCEP will boost trade and business ties between Singapore and the RCEP parties, said Trade and Industry Minister Gan Kim Yong in a press release.
He said that many Singapore businesses indicated that they were keen to explore using the RCEP Agreement when it enters info force during outreach events.
From Saturday, businesses will be able to enjoy 92 per cent tariffs on goods traded among signatory parties for which the agreement has entered into force, according to the Ministry of Trade and Industry MTI.
The agreement was signed in November 2020. The countries that have ratified the agreement include Singapore, Australia, Brunei, Cambodia, China, Japan, Laos, New Zealand, Thailand and Vietnam.
Businesses will be able to enjoy additional market access for specific products, including mineral fuels, plastics, other chemical products, miscellaneous food preparations and beverages in selected RCEP markets such as China and Japan, said MTI.
With streamlined rules of origin and regional cumulation provisions, businesses will have more flexibility to tap on these preferential market access benefits and be able to take advantage of regional supply chains. It said businesses could benefit from enhanced commitments above existing ASEAN Plus One free trade agreements in some sectors. Investors may benefit from commitments to prohibit performance requirements and provisions that lock in future relaxation of measures.