RCEP FACTS

RCEP aims to create an integrated market for 15 countries to more easily sell their products and services across the region. India pulled out of the agreement in 2019 because of concerns about the impact on its industrial and agricultural sectors.

RCEP includes 20 chapters in total, covering commitments on further liberalisation of trade, removal of non-tariff trade barriers and barriers to the service sectors, and creating an enhanced business environment through regulations on intellectual property protection, government procurement practices, e-commerce and dispute settlement.

Under the RCEP agreement, China, Japan and South Korea will further reduce or eliminate tariffs on goods exported from Thailand such as fresh and processed fruit, fishery products,fruit juices, rubber and rubber products, automobiles and components, plastics, chemicals, electrical components and computers and parts.

Impact on Thailand

O More competitors O An influx of cheap products from member countries directly affecting Thai SMEs and farmers O RCEP favours trade and investment for China, Japan and South Korea more than Thailand O E-commerce trade is expanding, but Thailand is weak in this area and still lacks measures to control product standards