China's Ministry of Commerce organized a three-day training event on the Regional Comprehensive Economic Partnership: RCEP. The president of the China Leather Industry Association (CLIA), Li Yuzhong, gave a speech on the opportunities and challenges presented by the RCEP. [China coaches industry in RCEP competitiveness – leatherbiz.com]
The Regional Comprehensive Economic Partnership (RCEP ) is a free trade agreement among the Asia-Pacific nations of Australia, Brunei, Cambodia, China, Indonesia, Japan, South Korea, Laos, Malaysia, Myanmar, New Zealand, the Philippines, Singapore, Thailand, and Vietnam. The 15 member countries account for about 30% of the world's population (2.2 billion people) and 30% of global GDP ($29.7 trillion), making it the largest trade bloc in history.
A three-day training event on the Regional Comprehensive Economic Partnership (RCEP) free-trade agreement was organised by China’s ministry of commerce in late May, targeted at local foreign trade enterprises who stand to benefit from the deal.
Businesses hailing from Hebei, Anhui, Jiangxi, Henan, Hubei, Hunan and Guizhou provinces all took part, Chinese media reported.
All attendees received guidance relating to RCEP rules of origin and the preferential customs clearance process, in addition to the treaty’s rules and standards for goods and market access, plus more.
Chairman of China Leather Industry Association (CLIA), Li Yuzhong, delivered a speech on the opportunities and challenges presented by the RCEP during one of the sessions.
Mr Li discussed how raw hides, semi-finished leathers, finished leathers, footwear, handbags and leather garments represented the bulk of Chinese leather industry commodities traded with the agreement’s member states. He further cited China’s “high-quality labour force, complete industrial chain and guaranteed production efficiency” as advantages over its trading partners, but cautioned that other RCEP members including Vietnam, Myanmar and Indonesia had developed “certain advantages” in labour, facilities and overall production costs in recent years, setting the scene for intensified market competition.
On the other hand, Mr Li said, new opportunities exist for exports of leather footwear and luggage, especially, to countries such as Japan, South Korea, Australia and New Zealand.
Among his suggestions for capitalising on the agreement, the CLIA chairman recommended studying international product standards to make sure that all goods and raw materials produced can be circulated throughout the RCEP network, as well as to take steps to boost brand recognition globally.
Mr Li also suggested that a reduction of import tariffs on raw materials in line with those of other member nations would support the overall competitiveness and sustainability of the local leather industry.
