RCEP agreement comes into effect for Malaysia today: Miti

KUALA LUMPUR – The Regional Comprehensive Economic Partnership (RCEP) agreement is now in force as Malaysia joins the world’s largest free trade agreement (FTA) with 15 other countries.

The countries comprise more than 2.2 billion or nearly a third of the global population and world’s gross domestic product. 

In a statement issued by the Malaysian International Trade and Industry Ministry, it said this represents a milestone in the growth and revitalisation of economies, anchored on the rules-based multilateral trading system.

“RCEP enables Malaysia to enjoy the global trade and investment ecosystem, benefiting from the eventual elimination of around 90% of tariff among members. 

“Other advantages to be gained include further liberalisation of trade encompassing removal of non-tariff barriers, increased trade facilitation, removal of barriers to the services sector as well as enhancement of business environment through regulations relating to intellectual property protection, government procurement practices and e-commerce. 

“Within Asean, Malaysia is expected to be the largest beneficiary of the agreement in terms of gains in exports, with a projected US$200 million increase.”

Last September, Senior Minister and International Trade and Development Minister Datuk Seri Mohamed Azmin Ali said Malaysia gave its commitment to finish ratifying the RCEP agreement by mid-December.

He had said based on the provisions of the RCEP agreement, it would come into force 60 days after at least six Asean member states and three Asean FTA partners have submitted the instruments of ratification to the Asean secretariat.

“To date, countries that have ratified the agreement include Singapore, China, and Japan. Myanmar has sent the instrument of ratification to the Asean secretariat, while Thailand has completed the domestic ratification process and will submit the instrument of ratification to the Asean secretariat at the end of the year.”

Azmin said that for Malaysia, the RCEP ratification process requires amendments to three acts under the purview of the Domestic Trade and Consumer Affairs Ministry relating to intellectual property rights, namely the Patents Act, Copyright Act. and Trademarks Act.

This, he said, was to ensure that the acts are in line with the country’s obligations under the RCEP agreement. – The Vibes, March 18, 2022