Beijing: The Regional Comprehensive Economic Partnership (RCEP) should be assessed beyond traditional goods-based indicators to encompass services, investment, and e-commerce for a comprehensive evaluation of the agreement's impact.
According to BERNAMA News Agency, Institute of Strategic and International Studies (ISIS) Malaysia senior fellow, Arividya Arimuthu, emphasized that certificates of origin are a starting point for measurement but do not reflect the trade pact's full scope. Arimuthu, speaking at the 'Thematic Dialogue: Enhancing RCEP Implementation Effectiveness to Unlock Greater Development Dividends' event, highlighted the importance of considering services, talent movement, investment presence, and e-commerce in understanding RCEP's overall implementation beyond goods movement.
She underscored the need to improve the effectiveness of the pact by focusing on tariff concessions, noting that they may not be as ambitious as older ASEAN 'Plus One' free trade agreements (FTAs). Mainstreaming these concessions could make RCEP more practical and appealing for small and medium enterprises (SMEs), who might opt to pay a nuisance tariff instead of applying for certificates of origin due to administrative costs.
Arimuthu also advocated for simplifying rules of origin and enhancing awareness among smaller firms through targeted education. She pointed out that SMEs require a better understanding of tariff classifications, customs codes, and minimum processing rules applicable to their products, stressing the need to help them navigate these complexities.
Additionally, she addressed the future expansion of the pact, highlighting the importance of clear guidelines on enlargement and accession processes as RCEP approaches its general review in 2027. Balancing the review process with expeditious accession for interested parties will be crucial in the utilisation debate.
Arimuthu concluded by noting that regional trade agreements with specific disciplines will increasingly serve as the rulebook for trade amidst global uncertainty, emphasizing RCEP's potential to become a regional trade rulebook and the importance of its effective utilisation.