Expand Thailand’s trade and investment base through the RCEP Agreement 2022

Thai Investment

It may be good news for Thai investment for entrepreneurs in all 3 industrial groups: farmers, various industrial groups, and service/investor groups from joining the Regional Comprehensive Economic Partnership Agreement (RCEP) or RCEP.

Upon approval by the Parliament, the ratification of the RCEP will be published in its entirety on the Department of International Trade Negotiations website www.dtn.go.th for the benefit of Thai entrepreneurs.

There will be 3 agencies that will have to adjust the regulations and laws to be in line with the RCEP agreement, namely:

1. Ministry of Finance (adjusting customs tariff rates from HS 2012 to 2017 and eliminating customs duty rates)
2. Ministry of Commerce (designing the form of the certification of origin regulations and import conditions, allowing the selection of raw materials from a wider range of sources, including raw materials from countries outside the RCEP)
3. Ministry of Industry (sets conditions for importing automotive parts so that Thailand can open the market for certain parts)

This process may take approximately 2-6 months for the ratification document to be issued and submitted to the ASEAN Secretariat.

The discussion results are expected to be completed by the end of this year and will come into effect on January 1, 2022.

The benefits that entrepreneurs in the 3 industrial groups will receive include:

1. Agricultural entrepreneurs – China, Japan and South Korea will receive a reduction or elimination of customs duties on products from Thailand, which will benefit Thai agricultural products. These products include processed and unprocessed vegetables and fruits, vegetable oils, processed foods, cassava flour and fishery products.
2. Industrial product group – both importers and exporters benefit, such as automotive parts, electrical equipment, chemicals, synthetic rubber, etc.
3. Service/Investor Group – Provides opportunities for Thai investors to invest in the RCEP market, especially in the service sector, such as health, tourism, construction, and online games, where they can hold 100% of the shares. In return, RCEP members can also invest in Thailand, such as in education, science, and the environment, etc.

Since the Thai economy still needs stimulation to recover and grow, with exports being an important part of the recovery of the Thai economy, it is necessary to rely on economic and trade cooperation to expand the export base.

Mr. Danucha Pichayanan, Secretary-General of the National Economic and Social Development Council (NESDB), spoke about the ongoing preparations for negotiations to join the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP).

Although it will take a long time, it will have positive results and create more opportunities for Thai products and investments in the future.

Source:

https://bit.ly/2NSxUcQ

https://mgronline.com/china/detail/9630000118575

https://www.ryt9.com/s/beco/3145767