UNCTAD estimates: Japan will benefit the most after RCEP takes effect

UNCTAD estimates: Japan will benefit the most after RCEP takes effect

According to a report by the Nihon Keizai Shimbun on December 16, the United Nations Conference on Trade and Development released its calculation results on the 15th. Regarding the Regional Comprehensive Economic Partnership Agreement (RCEP) that entered into force in January 2022, among the 15 countries participating in the agreement , Japan will benefit the most from tariff cuts. It is expected that Japan's exports to countries in the region will increase by 5.5% over 2019.

The calculation results show that, stimulated by favorable factors such as tariff cuts, intra-regional trade is expected to increase by US$42 billion. Approximately US$25 billion of this is the result of the shift from outside the region to within the region. At the same time, the signing of RCEP also gave birth to US$17 billion in new trade.

The report pointed out that 48% of the increased intra-regional trade volume of US$42 billion, or about US$20 billion, will benefit Japan. The removal of tariffs on auto parts, steel products, chemical products and other commodities has prompted countries in the region to import more Japanese products.

The United Nations Conference on Trade and Development believes that even in the context of the raging new crown epidemic, RCEP intra-regional trade is relatively less affected, emphasizing the positive significance of reaching a multilateral trade agreement.

According to the report, RCEP is a multilateral agreement reached by Japan, China, South Korea, ASEAN and other countries, and about 90% of the products will receive zero-tariff treatment. The total GDP of 15 countries in the region accounts for about 30% of the world's total.