China Japan Photo: IC

 
Trade between China and Japan will get a huge boost from the Regional Comprehensive Economic Partnership (RCEP) thanks to favorable terms in areas including tariffs, according to the Japan External Trade Organization (JETRO) Beijing.

In a letter sent to the Global Times on Thursday, JETRO Beijing expressed its excitement over the benefits that the RCEP offers, including the expansion of exports from Japan to China, its largest trading partner for decades.

This trade agreement brings the three major economies of China, Japan and South Korea into the same economic system for the first time, and it is also the first direct economic free trade agreement between China and Japan.

In terms of trade in industrial products between China and Japan, the number of products with zero tariffs on both sides will reach about 86 percent, JETRO Beijing said.

"For Japan, export tariffs on auto parts, steel products, chemicals, home appliances, fiber products and other categories will be greatly reduced, and many fields will benefit," the government-related organization said.

"Japan's exports of sake and shochu and other alcoholic beverages to China will also have zero tariffs," JETRO Beijing said, saying they expect further expansion of exports in this area.

Since China and Japan have established free trade relations, the ratio of zero tariffs to each other is currently 25 percent and 57 percent respectively, data from China's commerce ministry shows.

But eventually, 86 percent of Japan's exports to China will achieve zero tariffs, while 88 percent of China's exports to Japan will enjoy zero-tariff treatment, according to media reports.

In addition to tariffs, relevant general rules for customs clearance procedures and investment have also been formulated, which will be very beneficial to trade and the entire Japanese economy, JETRO Beijing further noted.

The GDP, total trade and population of RCEP member countries account for about one-third of the global total, making it a huge free trade agreement. 

JETRO Beijing said that trade with member countries accounts for 43 percent of Japan's exports and 49 percent of its imports.

A previous report released by the Japanese government in March, 2021 shows that the RCEP, which was signed by 15 countries including China and Japan, will offer a significant boost for the Japanese economy and is expected to increase the country's GDP by 2.7 percent.