SYDNEY, Jan. 20 (Xinhua) -- The Regional Comprehensive Economic Partnership (RCEP) provides a powerful organisational framework to drive regional economic growth, an Australian business leader has said.
China's participation in the RCEP, which entered into force on Jan. 1, 2022, has given a further boost to open regionalism and free trade, David Olsson, national president and chair of the Australia China Business Council (ACBC), told Xinhua in a recent written interview.
Since its inception, the RCEP has played a crucial role in streamlining trade rules, reducing tariffs, harmonizing the rules of origin, facilitating investments and establishing standards in key areas such as e-commerce, intellectual property, and government procurement across its member countries, he said.
The RCEP comprises 15 Asia-Pacific countries -- 10 member states of the Association of Southeast Asian Nations (ASEAN), China, Japan, South Korea, Australia, and New Zealand, accounting for about 30 percent of the world's population and contributing 30 percent of global economic and trade volume.
It is the world's largest free trade pact in terms of population and trade volume.
Against the headwinds of mounting protectionism, the RCEP provides a powerful region-wide organisational framework to drive regional economic growth and stability, Olsson said.
The institutional arrangements enshrined in the RCEP agreement support economic cooperation, which in turn is helping to reinforce political trust and confidence in deeper economic ties, he said.
For Australia, the RCEP was seen from the beginning as offering both potential economic benefits, and also being strategically important, Olsson said.
Growth opportunities have been identified in a range of sectors, the ACBC leader said.
In agriculture, there is potential to expand Australian exports of premium food and fibre, including traditional commodities, to new and innovative goods, such as plant-based proteins and agri-tech advancements, Olsson said.
Growth in export prospects is also expected for agricultural professional services, particularly in the dairy, meat and grains industries, where China has shown confidence in integrating Australian expertise and management, he said.
Like Australia, China has been an advocate for multilateral and regional arrangements, and as the largest economy in East Asia it serves as a key pillar to be a center of the global economy, Olsson noted.
China's trade with RCEP countries is already very substantial, and its importance as a trade and investment partner continues to grow, he said.
According to Olsson, there is a natural synergy between China and other RCEP members.
RCEP members recognize the importance of access to the Chinese market, and the need to do so efficiently. And, on the other hand, the growing affluence of the ASEAN region will attract investors from China and beyond, he said.
In that context, it's natural that China is seeking not only to promote its own high-grade development but to play an active role in facilitating the efficient integration of the regional markets, Olsson said. ■
