DTN: Businesses must gear up for RCEP

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DTN: Businesses must gear up for RCEP

Panod Srisinsuphya

 

 

BANGKOK (NNT) - The Department of Trade Negotiation (DTN) has announced success in advancing the world’s biggest Free Trade Agreement despite hiccups, while urging businesses to prepare for greater competition.

 

With the Regional Comprehensive Economic Partnership (RCEP) deal underway for signing next year, and introduction soon after, DTN Director-General Auramon Supthaweethum today urged all entrepreneurs to look at the situation as both an opportunity and a threat.

 

Businesses especially SMEs must step up innovation and use of technology to add value to their products, as the country has been promoting the Industry 4.0 and 4IRs initiatives, to increase their competitiveness and product value to be able to compete with incoming products and services from foreign countries.

 

The RCEP pact comprises all countries in ASEAN as well as China, Japan, South Korea, Australia and New Zealand, and despite being without India, the agreement will still be the world’s biggest business FTA with a combined population of 2.2 billion (30% of the world’s population), contributing 28.96% of the world’s GDP (Gross Domestic Product) or 24.5 trillion USD. Thailand currently generates 141 billion USDs exporting products to RCEP members or 55.79% of the country’s exports.

 

According to the Director-General, once the RCEP deal comes into effect, Thai entrepreneurs will able to invest more in a wide range of countries as listed in the pact, while businesses in the fields of construction, retail, and health, along with production houses and entertainment would most likely do well and contribute to the region as these are areas in which the country has been excelling. Meanwhile, the country will also benefit from in coming businesses especially in the fields of machinery, electronic parts, plastics and chemicals, tires and car parts, fibre, textiles and fashion, Cassava flour related products and paper.

 

ASEAN leaders and dialogue partners during the ASEAN Summit organized at IMPACT Muang Thong Thani, on November 3-4, 2019, resolved to conclude the text negotiations of the Regional Comprehensive Economic Partnership (RCEP) deal, as well as the market access negotiations, despite uncertainty about India’s participation. The official overseers of the 15 participating countries will now proceed with the legal scrubbing of the deal to allow the whole package of agreements to be ready for signing in 2020.

 

-- © Copyright NNT 2019-11-09

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