The global free trade "circle of friends" officially opened, how much does it affect the plastics industry?

[ Hot Focus on Chemical Machinery and Equipment Network ] At the beginning of the new year, the world economy and trade ushered in major events
.
On January 1, 2022, the Regional Comprehensive Economic Partnership (RCEP) came into effect
.
Six ASEAN member states, including Brunei, Cambodia, Laos, Singapore, Thailand, and Vietnam, and four non-ASEAN member states, including China, Japan, New Zealand, and Australia, have officially started implementing the agreement
.
This is an important step for countries in the region to safeguard the multilateral trading system and build an open world economy with practical actions
.

 

RCEP was initiated by ten ASEAN countries in 2012.
It is a free trade agreement with "the largest participating population, the most diverse membership structure and the greatest development potential" in the world
.
After eight years of negotiations, the RCEP was officially signed on November 15, 2020
.
It is understood that the remaining five member states, South Korea, Indonesia, Malaysia, the Philippines, and Myanmar will also take effect after completing the relevant procedures.
Among them, South Korea is expected to start implementing the agreement on February 1 this year
.

 

　　RCEP contains huge market potential and will inject strong impetus into regional economic development
.
After the agreement comes into effect, more than 90% of the trade in goods in the region will immediately or gradually achieve zero tariffs
.
So, what impact does this have on my country's plastics industry? What changes will it bring to the development of the plastics industry?
 

　　According to customs statistics, in the first 11 months of 2021, the total value of China's imports and exports to the other 14 RCEP member countries was 10.
96 trillion yuan, accounting for 31% of China's total foreign trade value in the same period
.
After the agreement takes effect, the largest tariff reductions will be on imported machinery and appliances, plastic products , electrical and electrical equipment, as well as exported textiles, bags, and plastic products
.
For example, China's tariff commitment to ASEAN member countries will directly reduce the tariffs on plastics and their products for a total of 150 tax items to 0, including plastic waste and scraps and scraps
.
In addition, there are 10 tax items for plastics and their products, which will be reduced from the original 6.
5%-14% base rate to 5%
.

 

　　The certificate of origin issued by the customs for the enterprise is the proof of the "nationality" of the goods, and it is an important certificate for the exporting enterprise to enjoy the preferential tariff concessions of the importing country
.
A few days ago, Sartomer (Guangzhou) Chemical Co.
, Ltd.
, a subsidiary of Arkema Group, was awarded the first certificate of origin under RCEP in Guangdong Province, China
.
At the same time, it became the first batch of approved exporters recognized by Guangzhou Customs District and signed the first declaration of origin under RCEP
.
The two-way opening of imports and exports is conducive to the development of Sartomer's light-curing capacity enhancement plan, enhancing the downstream acrylic business in Asia, and also enabling Arkema to further develop its high-performance solvent-free UV light-curing solutions
.

 

　　In addition, chemical new material enterprises in Ningbo, Zhejiang will also enjoy the dividends of trade liberalization
.
Raw materials such as metal ores, basic organic chemicals, and primary-shaped plastics from RCEP member countries have always been indispensable resources for Ningbo manufacturing
.
The electromechanical and labor-intensive products produced in Ningbo are also the needs of other RCEP member countries
.
According to Ningbo Customs statistics, from January to November 2021, Ningbo's import and export volume to other RCEP member countries was 286.
71 billion yuan, accounting for 26.
3% of the city's import and export volume during the same period
.

 

　　Nouryon Chemicals (Ningbo) Co.
, Ltd.
is a large-scale chemical enterprise.
The raw materials imported from RCEP member countries account for more than 70% of the total imports.
After the RCEP takes effect, enterprises can directly save 2% of tariffs, which will affect the cost control of enterprises.
big
.
Another example, Ningbo Jintian New Materials Co.
, Ltd.
, with the certificate of origin of enameled wires exported to Japan, the entry tariff rate of goods in Japan has dropped by 0.
4 percentage points compared with the original, and the entry tariff rate will decrease year by year
.

 

　　For the automotive industry, RCEP has a great impact on the parts industry of China's new energy vehicles
.
China has made a zero-tariff commitment to about 65% of auto parts, accounting for about 90% of the trade volume of auto products
.
However, the main method is to gradually reduce over a long period of time.
For example, after 10 years, the auto parts for Japan and South Korea will gradually decline
.
This is not only conducive to the integration of the automotive supply chain industry chain in East Asia, but also the automotive industry can take this opportunity to enhance the overall strength of vehicle manufacturing
.

 

　　All in all, RCEP is a life circle that benefits people of all countries, and it is also a super circle of friends for economic free trade of various countries
.
The key to the agreement lies in the implementation of the agreement by each country.
Only by being familiar with the rules can you better seize the dividends
.
At present, it is necessary to promote the RCEP agreement to enter into force in all member states as soon as possible in order to truly play its leading role
.

 

　　Note: This article is organized and published by Plastic Machinery Network ( and the data comes from: Jupai Investment, New Observation of Waste Plastics, Arkema, China Ningbo Network, Shanghai Council for the Promotion of International Trade
 

　　Original title: The global free trade "circle of friends" officially opened, how much does it affect the plastics industry?