Malaysia to sign long-awaited RCEP trade deal on Sunday

KUALA LUMPUR – Countries participating in the Regional Comprehensive Economic Partnership have concluded negotiations on the world's largest free trade agreement, paving the way for the signing of the long-awaited trade deal this Sunday.

International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali said Malaysia is ready to sign the agreement, having received the cabinet’s mandate for the trade deal’s implementation. 

The government has carried out engagements on the RCEP with domestic stakeholders, state governments, and the cabinet. 

"This morning, I attended the final ministerial-level meeting for the RCEP agreement, which was also attended by 14 other ministers, including ministers from Asean partners.

“As we all know, the history of RCEP negotiations in the past eight years has been a long and arduous journey, but we are finally at the finishing line," he told a press conference here today. 

Azmin said the agreement would enhance regional economic integration with a vast array of multiplier effects.

“This would include, for example, having a customer base of close to one-third of the world’s population, which means greater market access for our businesses and traders,” he said.

“We would also be able to see the easing of non-tariff measures, including harmonisation of rules and standards related to trade, which will facilitate cross-border trade within the region.”

Azmin said he strongly believed the RCEP would be able to attract even greater investments to benefit the region as a whole.

“Malaysia is also confident the RCEP can be used as an economic recovery tool against Covid-19. The implementation of this agreement will help to ensure the opening of markets as well as an uninterrupted supply chain."  

Azmin said this was in line with the Asean Comprehensive Recovery Framework (ACRF). 

“During this difficult time, I believe it is imperative that we act in solidarity and collectively in order for the ACRF to materialise,” he said. 

Azmin said the agreement would further demonstrate Asean’s centrality in shaping the global trade agenda. 

Hence, he said, it was imperative that all participating countries endorse the interim joint committee to ensure the smooth and swift implementation of the agreement. 

"As RCEP is such an important agreement for Asean, the signing will be a testament to the world in our efforts to strengthen not only the multilateral trading system, but also upholding the World Trade Organisation’s development agenda. 

"It will also demonstrate to the world that the region, together with the Asean free trade agreement partners, says no to protectionism and yes to free trade," he said. 

Azmin said the signing will send a positive signal to the world that Malaysia and the other RCEP countries have chosen to open their markets instead of resorting to protectionist measures during this difficult time. 

"This is also consistent with the business support measures announced in Malaysia’s Budget 2021. Participating countries will no doubt be able to ride on the economic value chains that will be generated with this agreement," he added. – Bernama, November 11, 2020