Broader RCEP Utilisation Key To Deeper Regional Integration

From Yasmin Ahmad Zukiman

HAIKOU (China), May 12 (Bernama) -- The Regional Comprehensive Economic Partnership (RCEP) should be measured beyond traditional goods-based indicators to include services, investment and e-commerce in order to better capture the agreement’s overall impact.

Institute of Strategic and International Studies (ISIS) Malaysia senior fellow (Chairman’s Office) Arividya Arimuthu said while certificates of origin serve as a starting point for measurement, they do not reflect the full scope of the trade pact.

“So it’s equally important to also look at indicators to calculate the utilisation of RCEP when it comes to services, in terms of movement of talent, for example in the commercial presence of investment and investors in RCEP countries as well as e-commerce,” she said.

Arividya was speaking at the ‘Thematic Dialogue: Enhancing RCEP Implementation Effectiveness to Unlock Greater Development Dividends’ held in conjunction with the 2026 RCEP Media and Think Tank Forum organised by China Daily and China Institute for Reform and Development (CIRD) here.

She said these elements were equally important in assessing the overall implementation of the agreement beyond the movement of goods.

On improving the effectiveness of the pact, she said attention must also be given to tariff concessions offered under RCEP, which may not be as ambitious as older ASEAN ‘Plus One’ free trade agreements (FTAs).

She said mainstreaming tariff concessions would help make RCEP more practical and attractive for small and medium enterprises (SMEs).

“If SMEs have to pay a five per cent nuisance tariff, they would probably opt to do that compared to apply for certificate of origin because of the administrative costs associated with it, the documentation that they need to present to multiple jurisdictions, especially if the particular good is moving across two or three countries,” she added.

Arividya also stressed the need to simplify rules of origin and improve awareness among smaller firms through more targeted education.

She said SMEs needed greater understanding of tariff classifications, customs codes and minimum processing rules applicable to their products.

“If I’m exporting hand lotion or biscuits as a small or medium entrepreneur, I probably wouldn’t know how to look at the customs code to understand what my product classification is.

“That is the level of awareness that we need to create for SMEs. We need to help them understand what is meant by the minimum processing rule. Product-specific rules within the RCEP should also look at the possibility of eventually becoming a general rule so that it's easier for SMEs to comply with those obligations,” she said.

On the future expansion of the pact, she said clearer guidelines on enlargement and accession processes would be important, particularly as RCEP heads into its general review in 2027.

She noted that finding a balance between the review process and helping interested parties accede expeditiously would be a key part of the utilisation debate.

Arividya said regional trade agreements containing specific disciplines would increasingly serve as the rulebook for trade amid global uncertainty.

“RCEP is at the cusp of becoming a rulebook for trade in the region and it's important that we utilise RCEP accordingly so that its full potential is realised,” she said.

-- BERNAMA