The Ministry of Finance and Economy hereby announces that the Regional Comprehensive Economic Partnership (RCEP) Agreement enters into force today, 1 January 2022, for Australia, Brunei Darussalam, Cambodia, The People’s Republic of China, Japan, Lao PDR, New Zealand, Singapore, Thailand and Viet Nam. The RCEP Agreement will also enter into force on 1 February 2022 for the Republic of Korea.
The entry into force of the RCEP Agreement will pave the way for the creation of a free trade area that covers, based on World Bank data1, 2.3 billion people or 30 per cent of the world’s population, contributes US$ 25.8 trillion or about 30 per cent of global GDP, and accounts for US$ 12.7 trillion or over a quarter of global trade in goods and services, and 31 per cent of global FDI inflows. These figures make RCEP the world’s biggest Free Trade Agreement (FTA) that will facilitate global value chains and trade within the region.
As the world continues to grapple with the economic havoc caused by the COVID-19 pandemic, the entry into force of the RCEP Agreement is a strong manifestation of the region’s resolve to keep markets open; boost regional economic integration; support an open, free, fair, inclusive, and rules-based multilateral trading system; and, ultimately, contribute to global post-pandemic recovery efforts. Parties are convinced that, with the market access commitments made among them, together with streamlined and modern rules and disciplines that facilitate trade and investment, RCEP would deliver new opportunities for businesses, strengthen supply chains in the region, and promote the participation of micro, small and medium enterprises (MSMEs) into the regional value chains and production hubs.
The RCEP agreement was signed on 15 November 2020 by the ASEAN Member States, Australia, The People’s Republic of China, Japan, Republic of Korea and New Zealand. Brunei Darussalam looks forward to the entry into force of the RCEP Agreement for the remaining signatory States.
All exporters in this country are encouraged to utilise the opportunities presented by the RCEP Agreement, particularly the preferential tariff rates on offer and the potential for optimisation of supply chain. For further information, please contact: tf@mofe.gov.bn
The legal text of the RCEP can be accessed through the following website: https://rcepsec.org/
