RCEP to Officially Take Effect in Korea on the 1st of Next Month
The World's Largest FTA Involving 10 ASEAN Countries and Others
[Asia Economy Sejong=Reporter Lee Jun-hyung] The Regional Comprehensive Economic Partnership (RCEP) will come into effect domestically starting next month. RCEP is the world's largest free trade agreement (FTA), involving 15 countries including China, Japan, and Australia.
The Ministry of Trade, Industry and Energy announced on the 27th that RCEP will be officially enforced in South Korea from the 1st of next month. After about eight years of negotiations, RCEP was concluded in November 2020. The FTA includes 15 countries: 10 ASEAN member states and 5 non-ASEAN countries. The South Korean government deposited its instrument of ratification with the ASEAN Secretariat on the 3rd of last month. According to the agreement's provisions, RCEP will come into effect 60 days after the deposit of the ratification instrument.
With the enforcement of RCEP, market access will expand for key products such as automobiles, parts, and steel, as well as services including online games, animation, and films. The Ministry of Trade, Industry and Energy explained that the effect of RCEP on the overseas expansion of domestic related companies is expected to be greater than that of existing FTAs such as the Korea-ASEAN FTA.
The burden on domestic companies in utilizing FTAs is also expected to be significantly reduced. This is due to the introduction of a single origin criterion that unifies the rules of origin recognition among member countries, the expansion of cumulative origin scope, and diversification of origin certification methods such as self-issuance by authorized exporters.
RCEP 15 Member Countries Local Chamber of Commerce Coordination Meeting(Seoul=Yonhap News) Jeon Yoon-jong, Director General for Trade Negotiations at the Ministry of Trade, Industry and Energy (second from left), is presiding over the "Regional Comprehensive Economic Partnership (RCEP) 15 Member Countries Local Chamber of Commerce Coordination Meeting" at Lotte Hotel Seoul on the 25th. 2022.1.25
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Previously, the Ministry of Trade, Industry and Energy conducted system improvements and explanatory sessions for companies in cooperation with related ministries to increase the utilization rate of FTAs by domestic companies after RCEP enforcement. They also promoted amendments to laws subject to revision, such as the Enforcement Decree of the Act on Special Cases Concerning Customs Law for the Implementation of Free Trade Agreements and the Enforcement Decree of the Act on Investigation of Unfair Trade Practices and Relief of Industrial Damage. A database was established to easily access tariff rates and origin information. Utilization support centers were also set up at regional customs offices nationwide, including Seoul, Incheon, Busan, and Daegu.
On the 25th, the Ministry held a meeting with companies operating in RCEP member countries. During the meeting, the Ministry listened to companies' difficulties and discussed future FTA support measures. Additionally, to support smooth FTA utilization by companies, the Ministry produced and distributed the 'RCEP Practical Utilization Guide' and 'RCEP Detailed Explanation Materials.'
The Ministry of Trade, Industry and Energy plans to continuously monitor issues related to the utilization of RCEP by domestic companies in cooperation with related ministries and affiliated organizations such as the Korea Trade-Investment Promotion Agency (KOTRA) and the Korea International Trade Association. Furthermore, to enhance RCEP utilization, joint cooperative projects will be identified and carried out with member countries within the region.
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