newsdirectory3

‘Mega FTA’ RCEP, effective in Korea on the 1st of next month… Expanding economic territory

Expected to benefit from the automotive, parts, steel and service industries… Government “Excavation of cooperative projects”

The effect of the FTA with Japan… 10 countries, including China and Japan, have already entered into force on the 1st of this month.

Regional Comprehensive Economic Partnership (RCEP) Negotiation (PG)

[정연주 제작] illustration

(Seoul = Yonhap News) Reporter Yoon Bo-ram = The Regional Comprehensive Economic Partnership (RCEP), the world’s largest free trade agreement (FTA), will go into effect in Korea on the 1st of next month.

As a result, the service market, such as online games and movies, as well as main items such as automobiles, parts, and steel, will be expanded and opened, and exports are expected to become more active. In particular, the effect of expanding the ‘economic territory’ through market diversification is expected due to the nature of Korea, which is highly dependent on exports.

According to the Ministry of Trade, Industry and Energy on the 27th, the RCEP was conducted in 10 ASEAN countries (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam) and 5 non-ASEAN countries (Australia, China, Japan, Korea, It is a multilateral trade agreement involving 15 countries including New Zealand).

It is the world’s largest FTA, accounting for one-third of the world’s gross domestic product (GDP), population, and trade.

Korea’s exports to RCEP member countries amounted to $269 billion, accounting for half of the total exports.

Korea deposited the ratification of the RCEP with the ASEAN Secretariat on December 3, last year, and according to the entry into force provisions of the agreement, the RCEP will enter into force on the 1st of next month, 60 days after the date of deposit of the instrument of ratification.

It went into effect on the 1st of this month in 10 countries, including China and Japan, which completed the ratification procedure before Korea.

Compared with the existing FTAs ​​such as the Korea-ASEAN FTA, the entry into force of the RCEP will expand the market for major products such as automobiles, parts, and steel, and services such as online games, animations, movies, and music albums, which is expected to make it easier for Korean companies to enter the market.

In particular, the introduction of a single country of origin standard that unifies the criteria for recognition of origin among countries in the region, expansion of the cumulative scope of origin, and diversification of methods of certification of origin are expected to reduce the burden on Korean companies using FTAs.

For the smooth implementation of the RCEP, the government has completed preparations such as amending relevant laws.

In order to increase the utilization of FTAs ​​by Korean companies, we have built a database where you can easily find information on tariff rates and countries of origin.

In addition, it held meetings for each type of business and region as well as meetings for companies that entered RCEP member countries, and produced and distributed ‘RCEP practical application guide’ and ‘RCEP detailed explanation material’. We also conducted training for consultants and customs officers at the 1380 Call Center to answer questions about FTA utilization practices.

Companies can easily find FTA counterparty customs information, RCEP tariff rates, and country of origin information in ‘Yes FTA’ operated by the Korea Customs Service and ‘TradeNavi’ of the Korea International Trade Association.

An official from the Ministry of Trade, Industry and Energy said, “We will check the difficulties related to the use of RCEP by Korean companies and strive to provide information to increase the utilization rate of FTAs.

[email protected]

Facebook
Pinterest
Twitter
LinkedIn
Email

Comments

Leave a Reply

Your email address will not be published.