Regional Supply Chains Consolidated by RCEP Provisions
The RCEP agreement will greatly enhance the supply chain relationships and production efficiency of its members, accelerating the economic integration in the Asia‑Pacific region. The trade in goods provision means that signatories will introduce tariff concessions and provide free market access. Some members like Australia, New Zealand and Singapore have committed to adopt a single unified tariff reduction schedule for imports from all members, while others like China, South Korea and Indonesia will adopt country‑specific schedules with separate tariff reduction timetables for imports originating from different members. In sum, import tariffs on more than 90% of all the goods will be eliminated in 20 years in the region. Coupled with the removal of non‑tariff barriers upon implementation of RCEP agreement, intra‑regional trade costs and product prices will be significantly reduced. The more transparent and stable policy environment will create new stimulus to trade and investment among the RCEP signatories.