Posted on 28 Jan 2022
The mega free trade pact of the Regional Comprehensive Economic Partnership (RCEP) will take effect for South Korea next month, the country's Trade, Industry and Energy Ministry said on Thursday (Jan 27).
In November 2020, South Korea inked the trade deal with 14 other countries — 10 member nations of the Association of Southeast Asian Nations (ASEAN), China, Japan, Australia and New Zealand — and the National Assembly ratified the pact in December last year.
It will come into force on Feb 1, 60 days after the government submitted the parliamentary approval to the Secretariat, according to the Yonhap news agency, citing the ministry in a release.
The RCEP is the world's biggest free trade agreement (FTA) as the 15 member countries account for around 30% of global gross domestic product, the world's population and trade volume, government data showed.
"The agreement is expected to help our companies' advance into overseas markets as it expands the market for our key export items, including steel and cars, as well as such service sectors as online games, animation, films and records," the release said.
The combined amount of South Korea's exports to the RCEP participants came to US$254.3 billion (about RM1.07 trillion) in 2020, taking up around half of the country's total outbound shipments, according to the data.
It is also the first FRA that involves South Korea and Japan.
The RCEP officially went into effect on Jan 1, 2022 for some countries in accordance with a rule that it shall enter into force as at least six ASEAN and three non-ASEAN nations had submitted the ratification after wrapping up their due domestic procedures.
Source:The Edge
