RCEP agreement to promote regional growth, contribute to global welfare: report
The Busan Port Terminal in Busan, South Korea, October 13, 2020. /CFP

The Busan Port Terminal in Busan, South Korea, October 13, 2020. /CFP

The Regional Comprehensive Economic Partnership (RCEP) agreement is expected to significantly promote the overall economic, trade and investment growth of the region and contribute to the growth of global trade and welfare, according to a Chinese Academy of International Trade and Economic Cooperation report.

The report said more than 90 percent of the goods trade in the region will eventually enjoy zero tariffs after the RCEP takes effect. By 2035, RCEP will drive the real GDP, export and import increase of the region to increase by 0.86 percent, 18.30 percent and 9.63 percent, respectively, from the baseline scenario, and the cumulative increase of exports and imports will reach $857.1 billion and $983.7 billion, respectively.

Among the RCEP members, the Association of Southeast Asian Nations (ASEAN) countries are expected to benefit the most from the macroeconomic level, with real GDP, imports and exports, investment all showing substantial growth. China, Japan, South Korea, Australia and New Zealand show a more significant increase in total economic welfare, the report said.

By 2035, the cumulative growth rate of ASEAN's overall GDP will increase by 4.47 percent. Among them, Cambodia, the Philippines, Thailand and Vietnam will benefit greatly in GDP, with a cumulative growth rate of 7.98 percent, 7.04 percent, 6.38 percent, and 6.33 percent respectively.

In terms of import and export growth rates, among ASEAN members, the cumulative growth rates of the Philippines, Cambodia, Thailand and Vietnam will increase by more than 20 percent. Meanwhile, among non-ASEAN members, South Korea's cumulative increase in exports is the largest, while China's cumulative increase in imports is the largest, according to the report.

As for China, the report said by 2035, RCEP will increase China's actual GDP, export and import increases by 0.35 percent, 7.59 percent and 10.55 percent respectively, and the cumulative increase in exports and imports will each reach $315.4 billion and $306.8 billion.

RCEP will also provide more jobs for ASEAN countries, boost the wages and facilitate capital inflows in the region.

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