The Regional Comprehensive Economic Partnership (RCEP) is a propositioned pact between the member states of the Association of Southeast Asian Nations (ASEAN) and its free trade agreement (FTA) partners. The agreement aims to cover trade in goods and services, intellectual property, and more. Knowing the RCEP benefits can help businesses in Southeast Asia provide better online shopping experience across borders for its consumers.

Additionally, RCEP is the world’s largest free trade agreement in terms of gross domestic product (GDP). It involves 15 member countries such as Singapore, Malaysia, Indonesia, Philippines, Brunei, Vietnam, Laos, Cambodia, Thailand, Myanmar, China, Japan, South Korea, Australia and New Zealand.  

What does RCEP mean for SMEs? 

The RCEP pact will eliminate tariffs for at least 92% of goods, open up trade in goods and services, and promote investment to help emerging economies catch up with the rest of the world. For small and medium enterprises (SMEs), this means easier cross-border trading and selling between neighbouring Southeast Asian countries.

Why is RCEP significant?

Before the RCEP pact was established, there were multiple FTAs in different countries and each of them has its own set of rules. Exporters had to comply with different set of rules for different countries. It was not only time-consuming, but costly as well. By establishing a common set of rules, businesses only need to follow one set of rules when exporting their products or services.

With simplified customs procedure, improved trade facilitation, lowered transaction time and costs, it gives exporters like you a certainty on cross-border activities for your e-commerce plans.

This pact is especially beneficial to SMEs as the digital economy still presents you with significant barriers for cross-border trade.

How does the pact work for you as an exporter?

With greater ease and more open markets, the RCEP pact will provide exporters like you much needed certainty and stability in times like this. With the right strategy, you can leverage on the RCEP benefits for your growing online business.

Though it will take some time for RCEP to get ratified and come into force as certain parties need to complete domestic procedures, businesses may start preparing as early as now. You can look at your current business model and assess the long-term implications of the pact. By doing so, you can reap the RCEP benefits of a more convenient cross-border trade and selling in the future.

Planning to bring your exports into Singapore and start selling online? Contact us and we will help you get started with your cross-border e-commerce store.