RCEP Agreement enters into force for Philippines hinh anh 1RCEP Agreement enters into force for Philippines (Photo: asean.org)

Jakarta (VNA) - The Regional Comprehensive Economic Partnership (RCEP) Agreement entered into force for the Philippines from June 2, 60 days after it has deposited its Instrument of Ratification with the Secretary-General of ASEAN in his capacity as the Depositary for the RCEP Agreement, the ASEAN Secretariat announced.

The RCEP, which entered into force on January 1, 2022, is an ASEAN-led initiative that creates the world’s largest free trade area in terms of the Parties’ combined gross domestic product (GDP) which is almost a third of the world’s GDP, and the market size as the Parties’ combined population accounts for almost one-third of the world’s population. RCEP comprises the ten ASEAN member states, Australia, China, Japan, the Republic of Korea, and New Zealand.

The entry into force of the RCEP Agreement for all its signatory States is a clear demonstration of the Parties’ support for a regional market that is open, free, inclusive, and adherent to a rules-based multilateral trading system.

Through the RCEP Agreement, businesses in the region, particularly micro, small and medium enterprises (MSME), can benefit not only from the market access commitments made by the Parties but also from a more liberal rules of origin that will provide businesses with broader options to source their production which could lead to increased productivity and competitiveness.

Additionally, the RCEP Agreement also streamlines rules and disciplines that facilitate regional trade and investment which will result in reduced transaction cost, and ultimately contribute to stronger and more resilient supply chains./.

VNA