Accelerate the approval! Japan officially completes the RCEP approval process

The Japanese Senate approved the Regional Comprehensive Economic Partnership ( RCEP) on the 28th . Since the House of Representatives , one of the two houses, had previously approved the world's largest free trade agreement, the approval of the Japanese Senate also means that Japan has officially completed the approval process for RCEP .

The plenary session of the Japanese Senate approved the Regional Comprehensive Economic Partnership Free Trade Agreement (RCEP)

According to the provisions of RCEP, the agreement will come into force after approval by at least 9 of the 15 members , and will come into force 60 days after at least 6 ASEAN member state signatories and 3 non-ASEAN member state signatories (namely China, Japan, South Korea, Australia and New Zealand) deposit their instruments of ratification, acceptance or approval with the depositary.

So far, four countries, namely Japan, China, Thailand and Singapore, have completed the established procedures and ratified the agreement .

It is reported that RCEP member countries have previously stated that they will complete their domestic approval procedures by the end of 2021 and push the agreement to take effect on January 1, 2022. Japan's Kyodo News Agency is even more optimistic and predicts that the agreement is expected to take effect by the end of this year.

The wide-ranging free trade agreement calls for eliminating tariffs on industrial goods, including cars, and agricultural products, as well as setting new rules for e-commerce and intellectual property protection.

The Japanese government previously released an RCEP economic effect assessment report saying that since Japan's two important trading partners, China and South Korea, have joined it, RCEP's boost to the Japanese economy will exceed all the trade agreements Japan has signed so far.

The Japanese government is eager for the agreement to take effect as soon as possible because RCEP is expected to increase Japan's GDP by 2.7% and create 570,000 jobs. This will be a shot in the arm for Japan's sluggish economy!

Japan has always been very strict on tariffs, but the tariffs between RCEP member countries have been promised to be reduced to zero within ten years. This will greatly reduce product costs not only for Japanese sellers, but also for cross-border people in Southeast Asia.

And it’s not just tariffs, the timeliness of logistics between countries will also be greatly improved. The simplification of customs procedures, coupled with the relaxation of bonded policies, will further improve the timeliness of logistics and reduce transportation costs.

Once the RCEP agreement comes into effect, there is no doubt that sellers will usher in a new wave of dividends, and this day is not far away!

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