▲ In the Regional Comprehensive Economic Partnership Agreement (RCEP), President Moon Jae-in poses for a commemorative photo with Mr. Myung-hee Myung-hee, head of trade negotiations, holding a signed copy of the agreement at the Blue House on the 15th.2020. 11. 15 Reporter Do [email protected]
As the Regional Comprehensive Economic Partnership (RCEP) came into effect in Korea on the 1st, the economic territories of Asian countries have expanded. In particular, exports of cultural services such as games and movies are expected to increase.
RCEP is the world’s largest RCEP with 15 countries including 10 ASEAN countries (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam) and 5 non-ASEAN countries (Australia, China, Japan, Korea and New Zealand). It is a free trade agreement (FTA) of scale. It accounts for one-third of the world’s gross domestic product (GDP), population and trade. Korea’s exports to RCEP member countries amounted to $269 billion, accounting for half of the total exports.
When the RCEP goes into effect, Korea will have the effect of making the first FTA with Japan. The Ministry of Trade, Industry and Energy predicted that with the entry into force of the RCEP, the market for major products such as automobiles, parts, and steel and services such as online games, animations, movies and music will be expanded.
The RCEP agreement consists of 20 chapters covering goods, services, investment, and intellectual property rights. The 10 ASEAN countries have further opened up their product markets to Korea through the RCEP. In goods trade, tariff abolition rates ranged from 91.9 to 94.5% by country between Korea and ASEAN, 83% between Korea and Japan, and 91% between Korea and China, Australia and New Zealand.
In service trade, treatment of nationals and most-favored countries and the opening of ASEAN’s cultural contents and distribution fields were also included. The country of origin standards for 15 countries have been consolidated to simplify the process for certification and declaration of origin. As the RCEP goes into effect, Korea’s product exports are expected to expand, and the path to overseas expansion is expected to include cultural contents and other services. The Korea International Trade Association (KITA) predicted that exports of plastics and synthetic resins will increase to Japan, medical and imaging equipment parts to China, and automobile parts and steel exports to Vietnam.
Senior Correspondent Ryu Chan-hee, Sejong
