What Malaysian Engineers Need to Know About RCEP
By Lim Tau Wee
The signing of the Regional Comprehensive
Economic Partnership Agreement ( RCEP ) between the 10 ASEAN economies and China , Japan , South Korea , New Zealand and Australia on November 15 , 2020 marked a global milestone for trade agreement . It all started during the 19 th ASEAN Summit held in November 14-19 , 2011 in Bali , Indonesia where the concept was mooted . The third round of RCEP negotiation was held in 2014 in Kuala Lumpur , Malaysia .
RCEP will impact the engineering fraternity in areas of manufacturing , standards and technical regulations and the exportation of consultancy services among members of the agreement .
It is thus pertinent for practising engineers to understand what RCEP entails as matters such as trade in services involving consultancy services are a double edged sword .
ABOUT RCEP
RCEP is an agreement to broaden and deepen ASEAN ’ s engagement with Australia , China , Japan , Korea and New Zealand . Together , these participating countries account for about 30 % of the global GDP and 30 % of the world population . The objective of RCEP is to establish a modern , comprehensive , high-quality and mutually beneficial economic partnership that will facilitate the expansion of regional trade and investment and contribute to global economic growth and development . Accordingly , it will bring about market and employment opportunities to businesses and people in the region . RCEP will work alongside and support an open , inclusive and rules-based multilateral trading system .
The virtual signing by ministers took place following the conclusion of the 4 th RCEP Summit on November 15 , 2020 . Picture sourced from the RCEP website rcepsec . org .
KEY FEATURES OF RCEP
RCEP is an agreement that takes into consideration changing and emerging trade realities , including the age of electronic commerce , the potential of micro , small and medium enterprises , the deepening regional value chain , and the complexity of market competition . RCEP will complement the World Trade Organisation ( WTO ), building on the WTO Agreement in areas where the Parties have agreed to update or go beyond its provisions .
RCEP addresses the issues required to support the Parties ’ engagement in global and regional supply chains and complements market access commitments with trade and investment enabling rules that are business-facilitating while at the same time preserving legitimate public policy objectives . It strives to boost competition in a way that drives productivity which is sustainable ,
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