How Would RCEP Impact The Foreign Trade?

What is RCEP?

RCEP (Regional Comprehensive Economic Partnership) is a free trade agreement took effect among the 15 member countries on January 1, 2022. After the agreement takes effect, it means that the region covering about a third of the world's economic volume will become a pure land of free trade and effective investment, which will greatly increase the stability of regional economic and consumer confidence to give impetus for the world economy out of the downturn in growth.

What specific impact does RCEP have on the global trade?

With the implementation of RCEP, over 90% of goods will eventually enjoy zero tariff. This is a big boost to regional trade and investment.

UNCTAD's research on RCEP shows that by 2025, RCEP will bring more than 10% export growth to 15 member countries. The combined national income of RCEP member countries will increase by US$186 billion by 2030, and the total annual export volume is expected to increase by an additional US$519 billion.

What specific impact does RCEP have on the the herbal extract?

With the increasing demand for food and beverage that are gluten-free, free from artificial flavors, colors and preservative, key players in the market are focusing on R&D investments to launch herbal extracts that meet consumer demand and requirement.

Moreover, global health organizations and food safety associations have imposed regulations that prohibit the utilization of artificial flavorings in food and beverages and promote the use of natural extracts such as herbal extracts.

That will drive the growth of the herbal extracts market. Although the market growth rate in ASEAN is slower than the growth of the market in other regions, the tariff concession and cost reduction caused by RCEP will facilitate the development and increase marketing opportunity of herbal extract market in RCEP membership.

What can we do after RCEP goes into effect?

We are mainly dedicated to the production and export of high-quality plant extracts, and we look forward to providing products with more sophisticated, high-quality and more in line with customer expectations under the implementation and promotion of RCEP.