THE STAR

Regional Comprehensive Economic Partnership (RCEP) - E-commerce and SMEs

RCEP parties recognise electronic commerce (e-commerce) as an engine of economic growth and creating business opportunities for small-and medium-sized enterprises (SMEs). It acknowledges the importance of setting out a framework that promotes consumer confidence in the adoption of e-commerce.

Key salient points

• Forge cooperation between each parties to assist SMEs to overcome obstacles in the use of e-commerce.

• Assist each others to implement/enhance their electronic commerce legal framework (e.g. capacity building or the provision of technical assistance) as well as to disclose information, share experiences and adopt best practices in addressing challenges related to the development and use of e-commerce.

• Enhance trade facilitation in terms of (a) Practices of paper trading refer to accept trade administration documents submitted electronically and to provide trade administration documents in electronic form that public are able to access or download; and (b) Legal validity of an electronic signature.

• Adopt or maintain a legal framework of online consumer protection and online personal information protection.

• Each party shall maintain its current practice of not imposing customs duties on electronic transmissions between the parties, in accordance with WTO Ministerial Decision. However, the agreement allow any parties to impose taxes, fees, or other charges on electronic transmissions, which are in a manner consistent with this Agreement.

Regional Comprehensive Economic Partnership (RCEP) - Trade in Services and Investment; Temporary Movement of Natural Persons (MNP)

Overview

• Compared to many conventional Free Trade Agreements (FTAs), Regional Comprehensive Economic Partnership (RCEP) covers broader aspects, i.e. Trade in Services and Investment, besides common trade in goods and tariff reduction.

• Trade in Services and Investment has already covered under existing ASEAN+1 FTAs, with the exception of ASEAN-Japan FTA; and Malaysia has a separate bilateral trade in services chapter under Malaysia-Japan Economic Partnership Agreement (MJEPA). Malaysia’s trade in services and investment clauses under RCEP is being enhanced, going beyond existing FTAs.

• In addition, RCEP also outlines clauses for mobility of natural persons among the RCEP members under Temporary Movement of Natural Persons Chapter.

• Trade in Services, covered under Chapter 8 of RCEP Agreement, seeks to facilitate the expansion of cross-border trade in services and provides Malaysia's services exporters improved market access opportunities into RCEP members’ market. Financial services, telecommunications and professional services are specifically spelt out in separate bespoke annexes under RCEP.

• Investment-related clauses as defined in Chapter 10, include core investment protections, which outline rules requiring payment of compensation where investment is expropriated, guarantees a minimum standard of treatment of investors under international law, compensation for losses due to conflict and civil strife, free transfer of investment-related capital without delay and prohibitions on performance requirements.

• Temporary Movement of Natural Persons outlined in Chapter 9, will enhance access into RCEP countries for business persons engaged in trade in goods, supply of services, and conduct of investment activities. It is designed to assist individuals and businesses in taking up commercial opportunities offered through RCEP. All RCEP members are required to administer, streamline and have transparent procedures for temporary entry applications.

Regional Comprehensive Economic Partnership (RCEP) -  Trade in Goods

This chapter contains two sections, i.e. a) General Provisions and Market Access for Goods, and b) Non-Tariff Measures. The ultimate outcome is to achieve a high level of trade liberalisation and market access among the RCEP parties.

Key salient points

• Each RCEP parties shall commit to reduce or eliminate its customs duties on originating goods of other Parties according to Schedule in Annex I (Schedules of Tariff Commitments).

• For non-tariff measures, this chapter covers general elimination of quantitative restrictions, greater transparency on the application of non-tariff measures, import licensing procedures and the application of fees and formalities connected with importation and exportation.

• Set out a process for Parties to conduct technical consultations on non-tariff measures that adversely affect trade between them and also provide for the possibility of future work to be undertaken on sector-specific initiative to facilitate greater trade.

Regional Comprehensive Economic Partnership (RCEP) - Can It Be A Game Changer? (Updated version as at 27 August 2021)

• The Regional Comprehensive Economic Partnership (RCEP), is the world’s largest free-trade agreement (FTA) comprising 15 countries: 10 member states of the Association of Southeast Asian Nations (ASEAN) – Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam, and five of their FTA partners (Australia, China, Japan, New Zealand and South Korea).

• The RCEP’s negotiation is an ASEAN driven initiative, which was launched during the 21st ASEAN Summit in Phnom Penh, Cambodia in November 2012. It is the second mega-regional FTA to involve the Asia-Pacific region after the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

• RCEP was built upon the existing ASEAN+1 FTAs aims to strengthen economic linkages, to enhance trade and investment related activities as well as contribute to minimising development gaps among the parties.

• RCEP negotiations are to achieve a modern, comprehensive, high-quality, and mutually beneficial economic partnership agreement among the ASEAN member states and ASEAN’s FTA partners.

• RCEP will only come into force after 9 signatory countries (a minimum of 6 from ASEAN, 3 from non-ASEAN) have ratified the agreement, which may take more than a year.

The Star

The Star

中国报

南洋商报

中国报