APAC Regional Comprehensive Economic Partnership Agreement (RCEP) and COVID-19 Recovery

When compared to other transnational free trade agreements, the Regional Comprehensive Economic Partnership Agreement (RCEP), which was signed in November of 2020 and is expected to be implemented sometime in 2021, is unrivalled in its complexity and remarkably lays the framework for a pan-Asian basic standard for trade that surpasses the terms provided by the World Trade Organization (WTO).

The formation of the RCEP trade bloc is indisputably a defining moment for international trade – a new, highly welcome development that could redirect foreign direct investment flows in the months and years ahead. At Tricor, we are highly cognizant of gauging how this trade deal will potentially divert trade flows and trigger new business trends. What starts as a large-scale, high level agreement between governments across APAC will likely soon trickle down to impact the daily decisions multinational corporations and SMEs make in how they operate, expand and invest, across domestic, APAC and international markets.

In this report, insights and analysis have been compiled by Tricor Group to inform companies on how the landmark signing of the RCEP and continued COVID-19 disruptions are impacting the APAC trade and investment landscape and how to prepare to deliver business growth in 2021.

What’s in this report?

The 2021 Asia Pacific Trade Report includes:

Economic Significance of the RCEP
- Key Benefits & Limitations
- A Remarkable, Transformative Response to Protectionism
- Expansion of Pan-Asian Trade Networks & Supply Chains
- Potential to Trigger a Renewed Trade Relationship with the U.S.
- A Boon for SMEs
- Comparing RCEP to CPTPP
- Trade Deals in Force Among Original RCEP Countries

Provisions of the RCEP
- Common Rules of Origin: Only One Certificate is Needed
- Trade of Goods: Reducing Tariffs
- Trade of Goods: Simplifying Customs Procedures
- Trade of Services: Opening to Foreign Investors
- Investment: Easing the Requirements
- Intellectual Property: Raising the Standards
- E-commerce: Syncing & Providing Greater Access
- Government Procurement: Raising Transparency

Seizing Opportunities & Overcoming Challenges in the RCEP Zone

How Companies Can Prepare for the RCEP & How Tricor Can Help

Further Reading: Doing Business Australia, China, Japan, South Korea, ASEAN, Malaysia, Singapore, Thailand, Vietnam

Leverage Tricor's expert insights to further your organization's business objectives and prepare to capitalize on the RCEP and the business growth opportunities it presents.

"The establishment of the RCEP trade bloc is indisputably a defining moment for global trade – a pivotal development that could redirect foreign direct investment (FDI) flows in the months and years ahead. At Tricor, we are highly cognizant of gauging how this trade deal will potentially disrupt FDI and trigger new trends in international business. Tricor Group’s 2021 Asia Pacific Trade Report provides a blueprint for global and local enterprises looking to leverage and capitalize on the new opportunities expected to be created by the RCEP. This expertise reinforces our leadership in the region as the ‘go-to’ partner for enterprises seeking to expand throughout Asia Pacific and beyond."

Lennard Yong, Tricor Group CEO

“Despite the unprecedented economic slowdown amid the COVID-19 pandemic and a growing trend toward protectionism around the globe, the RCEP serves as a symbol for a pan-Asian trade network and embraces the belief that enhanced market openness will lead to greater economic prosperity. Not only are the developed, powerhouse economies of China and Japan brought together by one trade agreement for the first time ever, they’re also joined by key emerging economies in ASEAN, such as Malaysia, Singapore, Thailand and Vietnam. The RCEP nearly guarantees that intra-Asian trade, which is already cumulatively larger than Asia’s trade with North America and Europe combined, will continue to be the growth engine for the global economy – pulling even greater economic gravity east toward APAC.”

Wendy Wang, Tricor Group CFO & Group COO

“The signing of the RCEP is much welcome news for enterprises and investors across APAC and beyond, especially against the unparalleled strains the COVID-19 pandemic has placed on global supply chains. As the leading business expansion specialist in APAC, Tricor has been helping businesses face the headwinds of an unprecedented public health crisis and prepare for more uncertainty ahead. In light of this landmark agreement, we look forward to working with global businesses to review and adapt their business models so they can benefit from the vast supply chain networks and strengthened multilateral cooperation afforded by the RCEP.”

Gary Tok, Tricor Group CCO

“The headlines of 2020 were largely dominated by one universal story: COVID-19. Few anticipated the distress and ubiquitous disruption the pandemic would present to economies around the world. Tricor Group’s 2021 Asia Pacific Trade Report, which draws from qualitative and quantitative data, suggests that, despite numerous roadblocks and pending uncertainties ahead, new opportunities are on the horizon for global businesses in 2021, such as the numerous benefits offered by RCEP. By highlighting these emerging prospects and prescribing possible steps to take, this report can help business leaders and investors stay ahead of the curve in today’s shifting landscape.”

Sunshine Farzan, Tricor Group Head of Marketing & Communications

“In the past two decades, China has ascended the ranks to become the most significant trading partner for most economies of the APAC region. Its central role in the RCEP will only serve to bolster this status. Notably, RCEP will enable the enhanced connectivity China needs with neighboring APAC economies to achieve large-scale regional economic plans, namely the Belt and Road Initiative (BRI) and the Greater Bay Area (GBA). Tricor China looks forward to supporting enterprises as they review business growth strategies, aligning them with new cross-border opportunities emerging thanks to the implementation of the RCEP.”

Hailiang Zhang, CEO, Tricor Mainland China

“At time when the COVID-19 pandemic and geopolitical tensions are prompting some countries to take a protectionist approach to global trade, the signing of the RCEP is a significant step in turning the tide to realize a free and open international economic order. As Japan’s first trade deal with China, its largest trading partner, and South Korea, its third largest, the RCEP is especially powerful, with the landmark agreement covering at least 46% of Japan’s total trade volume. While RCEP opens new doors, rerouting supply chain networks can also bring more complexity. We look forward to working with global businesses and investors to reap the benefits afforded by the RCEP in Japan.”

Scott Sato, CEO, Tricor Japan

“Supply chain diversification has come under the spotlight in recent years, thanks to ongoing geopolitical tensions and pandemic disruptions. Under the RCEP, plans for China+1 or ASEAN+1 supply chain strategies, which many global companies have set their sights on, will be streamlined with greater market access across the RCEP zone. In particular, thanks to the deal’s focus on digitization and smart manufacturing, SMEs in Malaysia will be incentivized to develop more innovative and competitive products, further deepening the country’s footprint in global and regional supply chains. Tricor Malaysia is committed to walking alongside and supporting our partners in cross-border endeavors throughout the region.”

Yeap Kok Leong, CEO & Managing Director, Tricor Malaysia / Labuan

"The RCEP is expected to greatly enhance regional cross-border trade, which is at the very heart of Singapore's open and export-oriented economy. Once RCEP is implemented and in force, companies in Singapore will enjoy greater flexibility in their sourcing strategies, gaining access to a larger pool of suppliers throughout the RCEP zone. At Tricor Singapore, we are committed to helping global and local enterprises pivot their business plans so they can capitalize on these emerging opportunities and collaborate with regional partners to explore new markets.”

Ho Lon Gee, CEO & Managing Director, Tricor Singapore

“The RCEP brings together different countries with different outlooks and prospects. But through multilateral cooperation and greater market access, the economies of the RCEP can work together to build a more resilient and inclusive future as a region. Notably, investors in Thailand can now expect enhanced trade opportunities throughout the region thanks to more goods becoming eligible for tariff reductions, heightened regulatory transparency and reduced compliance costs associated with customs processes. But due to the scale and diversity of the RCEP’s coverage, its implementation may prove to be cumbersome for some businesses. As a leading business expansion specialist in Thailand, we look forward to working with firms to navigate impending challenges, fill gaps and stay ahead of the curve.”

Dyland Mah, CEO, Tricor Thailand

“In recent years, Vietnam has earned a reputation as a ‘tiger’ economy, becoming one of the most attractive FDI destinations in ASEAN and APAC. The RCEP is particularly significant for the future of trade and investment in Vietnam, as the deal is projected to drive critical domestic regulatory reforms in key areas such as labor laws, investment liberalization, cybersecurity, data security and protection of intellectual property. In response to mounting opportunities and evolving needs, Tricor Vietnam offers a full suite of business expansion solutions to serve incoming enterprises to Vietnam, especially as they navigate the local landscape and explore how RCEP may impact business decision.”

Lim Chor Ghee, General Director, Tricor Vietnam

APAC Regional Comprehensive Economic Partnership Agreement (RCEP) and COVID-19 Recovery

Trade Report: APAC Regional Comprehensive Economic Partnership Agreement (RCEP) and COVID-19 Recovery

What’s in this report?

2021 Asia Pacific Trade Report