SOURCE / ECONOMY
Japan ratifies world’s largest free trade deal following China, Singapore and Thailand
Published: Apr 28, 2021 01:44 PM
RCEP Photo: VCG

RCEP Photo: VCG


 
Japan on Wednesday approved the Regional Comprehensive Economic Partnership (RCEP) following the pace of China, Singapore and Thailand, making a further step for the implementation of the pact on January 1, 2022.

Japan’s parliament approved the world’s largest free trade deal, signed by 15 Asia-Pacific countries including China and the 10-member Association of Southeast Asian Nations, Kyodo News reported.

By Wednesday, China, Singapore and Thailand have completed procedures for ratification. All members of the RCEP are planning to ratify the agreement before the end of this year and push for it to become effective on January 1, 2022.

Japan’s approval of the RCEP will greatly boost trade and investment with China, as there will be free trade arrangement between two large Asian economies, Zhang Jifeng, a former vice director of the Institute of Japanese Studies at the Chinese Academy of Social Sciences, told the Global Times on Wednesday.

“With the deal, more than 80 percent of Japanese exports will enjoy a zero-tariff access to the vast Chinese market, and vice versa. Meanwhile, investment convenience, intellectual property protection and people to people exchange will also be promoted,” he said.

Zhang said that Asia’s economy – the engine room for the global economy – will continue to boost post-pandemic economic recovery through closer regional integration guided by the RCEP.

The pact – signed last November – covers about 2.27 billion population and a total GDP of $26 trillion, both about 30 percent globally.

Economic growth in developing Asia is forecast to rebound to 7.3 percent in 2021, supported by a healthy global recovery and early progress on COVID-19 vaccines, according to an Asian Development Bank report released on Wednesday. It projected that China’s GDP will expand 8.1 percent this year.

Global Times