Chairman Kobayashi’s Comments on Coming into Force of RCEP Agreement

January 4, 2022

The Regional Comprehensive Economic Partnership (RCEP) agreement has come into force. I welcome the creation of the world’s largest free trade zone, accounting for about 30 percent of the world’s GDP, population and trade. The RCEP agreement also has great significance as Japan’s first free trade agreement with China, its largest trading partner, and the Republic of Korea, its third largest.

With the entry into force of the RCEP agreement, we can expect the creation of more efficient supply chains through improved market access and smoother trade procedures. I am also hopeful that this partnership will make Japanese and other international enterprises more competitive in this region, as it promises to establish rules on intellectual assets, e-commerce and other far-reaching aspects of business. Such standardization will be essential considering that the countries involved are at varying stages of development with respect to their systems, economic growth, and so on.

On behalf of the JFTC, I call on the Japanese government to continue lobbying for India’s participation in this vital partnership, which will pave the way to a free and open Indo-Pacific. Japan must set a strong example to encourage the establishment of rules-based international order and full compliance by all participating countries in economic partnerships.