rcep specifics

The RCEP Agreement consists of a Preamble, 20 chapters (including: Initial Provisions and General Definitions, Trade in Goods, Rules of Origin, Customs Procedures and Trade Facilitation, Sanitary and Phytosanitary Measures, Standards, Technical Regulations and Conformity Assessment Procedures, Trade Remedies, Trade in Services, Temporary Movement of Natural Persons, Investments, Intellectual Property Rights, E-Commerce, Competition, Small and Medium Enterprises (SMEs), Economic and Technological Cooperation (ETC), Government Procurement, General Provisions and Exceptions, Institutional Provisions, Dispute Settlement, and Final Provisions Chapters), and four Market Access Commitment Schedule Annexes (including: Tariff Commitment Schedule, Services Specific Commitment Schedule, Investment Reservations and Non-Conforming Measures Commitment Schedule, and Specific Commitment Schedule on the Temporary Movement of Natural Persons). Chapter I Initial Provisions and General Definitions This chapter mainly sets out the objective of the RCEP Parties to *** together establish a modern, comprehensive, high-quality, and mutually beneficial ****winning cooperative framework for economic partnership to promote the growth of regional trade and investment and to contribute to global economic development. The chapter also defines terms commonly used in the agreement. Chapter II Trade in Goods This chapter aims to promote the achievement of a high level of intraregional trade liberalization and provides for commitments related to trade in goods. Provisions include commitments to grant national treatment to goods of other parties under Article III of the General Agreement on Tariffs and Trade; preferential market access through progressive implementation of tariff liberalization; temporary duty-free entry of specified goods; elimination of agricultural export subsidies; and full elimination of quantitative restrictions, administration of import licensing procedures, and non-tariff measures such as fees and formalities associated with imports and exports, among other bindings. Chapter III Rules of Origin This chapter establishes rules for the determination of goods of origin eligible for preferential tariff treatment under the RCEP. While ensuring the application of the principle of substantive change, it highlights technical feasibility, trade facilitation and business friendliness to make the RCEP agreement easy for enterprises, especially SMEs, to understand and use. In Section I of this chapter, the criteria for granting goods "originating status" are set out in Articles II (originating goods) and III (wholly acquired or produced goods), as well as in Annex I, the Product Specific Rules of Origin (PSRs). The Agreement also allows for the application of a cumulative rule of origin by taking into account the value components from any RCEP Party when determining whether goods are subject to RCEP tariff preferences. In Section II, the relevant operational certification procedures are set out, including detailed procedures for applying for RCEP certificates of origin, applying for preferential tariff treatment, and verifying the "origin status" of goods. There are two annexes to this section: (1) Product-Specific Rules of Origin, which cover some 5,205 products with 6-digit tariff lines; and (2) Minimum Information Requirements, which sets out the information required for a certificate or declaration of origin. Chapter 4 Customs Procedures and Trade Facilitation This chapter targets the creation of an environment that facilitates regional supply chains through provisions that ensure predictability, consistency, and transparency in customs laws and regulations, as well as provisions that promote the efficient management of customs procedures and the expeditious clearance of goods. This chapter contains enhanced provisions above the level of the WTO Trade Facilitation Agreement, including: advance rulings on tariff classification, origin, and customs valuation; facilitation measures related to import/export and transit formalities and procedures for operators (authorized operators) that meet certain conditions; and risk management methodologies for customs control and post-clearance audits. Chapter V Sanitary and Phytosanitary (SPS) Measures This chapter sets out the basic framework for the development, adoption and implementation of SPS measures for the protection of human, animal or plant life or health, while ensuring that the said measures are, as far as possible, not trade-restrictive and that there is no unjustifiable discrimination between SPS measures implemented by Parties under similar conditions. While Parties have already declared their rights and obligations in the WTO Agreement on Sanitary and Phytosanitary Measures (SPS Agreement), the Agreement strengthens the provisions on enforcement in non- and low-prevalence areas for pests and diseases, risk analysis, auditing, certification, import inspections, and emergency measures. Chapter VI Standards, Technical Regulations and Conformity Assessment Procedures This chapter strengthens Parties' implementation of the WTO TBT Agreement and recognizes the understandings reached by Parties on standards, technical regulations and conformity assessment procedures. At the same time, it promotes the exchange of information and cooperation between the Parties in recognizing standards, technical regulations and conformity assessment procedures to reduce unnecessary technical barriers to trade, and to ensure that standards, technical regulations and conformity assessment procedures are in conformity with the provisions of the WTO Agreement on Technical Barriers to Trade. Chapter VII Trade Remedies This chapter includes two parts: "Safeguard Measures" and "Anti-Dumping and Countervailing Duties". With regard to safeguard measures, the Agreement reaffirms the rights and obligations of the Parties under the WTO Agreement on Safeguards and establishes a system of transitional safeguard measures to provide remedies in cases where the Parties have suffered damages as a result of tariff reductions in fulfillment of the Agreement. Regarding anti-dumping and countervailing duties, the Agreement reaffirms the rights and obligations of the parties under the relevant WTO agreements, and establishes an Annex on Practices Related to Anti-Dumping and Countervailing Duty Investigations, which regulates practices such as written information, opportunities for consultations, and public notices and explanations of rulings, and contributes to the enhancement of the transparency and due process of trade remedy investigations. Chapter VIII - Trade in Services This chapter reduces restrictive and discriminatory measures affecting cross-border trade in services, and creates conditions for further expansion of trade in services among Parties. It includes rules on market access commitment schedules, national treatment, most-favored-nation treatment, local presence, and domestic regulations. Some Parties have adopted the negative list mode for market access commitments, requiring Parties now using positive lists to convert to the negative list mode for arrangements on their services commitments within six years of the entry into force of the Agreement. Annex I to Chapter VIII: Financial Services Annex The Financial Services Annex sets out specific rules on financial services, while providing sufficient policy and regulatory space to guard against financial system instability. In addition to the obligations under Chapter VIII (Trade in Services), this Annex includes a robust prudential carve-out to ensure that financial regulators retain the ability to put in place measures to support the integrity and stability of the financial system. The Annex also includes financial regulatory transparency obligations, whereby Parties undertake not to prevent the transfer or processing of information necessary for the conduct of business and the provision of new financial services. This annex also provides for Parties to discuss, including through consultations, the resolution of balance-of-payments crises or situations that could escalate into balance-of-payments crises. Annex II to Chapter VIII: Telecommunications Services Annex This Annex sets out a framework of rules relating to trade in telecommunications services. Building on all existing ASEAN '10+1' FTA Telecommunications Services Annexes, the Annex includes provisions on regulatory approaches, international submarine cable systems, unbundling of network elements, access to poles, pipes and ducts, international mobile roaming, and flexibility of choice of technology. flexibility of choice, and other provisions. Annex III to Chapter VIII: Professional Services Annex This annex provides ways for Parties to facilitate the provision of professional services within the region. This includes: enhancing dialogue among relevant bodies for the recognition of professional qualifications and encouraging consultations among RCEP Parties or relevant bodies on *** professional qualifications, licensing or registration in professional services sectors of common interest. Parties or relevant bodies are also encouraged to develop mutually acceptable professional standards and guidelines in the areas of education, examinations, experience, codes of conduct and ethics, professional development and re-accreditation, scope of practice, and consumer protection. Chapter IX Movement of Natural Persons This chapter sets out the commitments made by Parties to facilitate the temporary entry and temporary stay of natural persons engaged in trade in goods, provision of services or investment, establishes rules for the granting of such temporary entry and temporary stay permits by Parties, and enhances the transparency of movement of persons policies. The attached table of commitments sets out the commitments covering categories such as business visitors, intra-company transferees, etc., as well as the conditions and limitations required for the commitments. This chapter covers four aspects of investment protection, liberalization, promotion and facilitation, and is a consolidation and upgrading of the investment rules of the former ASEAN '10+1' FTA, including the commitment to most-favored-nation (MFN) treatment, the prohibition of performance requirements, the adoption of a negative list model for market access in non-services sectors, and the adoption of a negative list model for market access in non-services sectors. This includes MFN commitments, the prohibition of performance requirements, the adoption of a negative list model for non-services market access commitments, and the application of the ratchet mechanism (i.e., a non-regressible level of liberalization in the future). The investment facilitation section also covers dispute prevention and coordinated settlement of foreign complaints. A table of commitments on investment and non-conforming measures is annexed to this chapter. CHAPTER 11 INTELLECTUAL PROPERTY This chapter provides a balanced and inclusive program for the protection and promotion of intellectual property rights in the region. It covers a wide range of areas such as copyright, trademarks, geographical indications, patents, designs, genetic resources, traditional knowledge and folklore, unfair competition, IPR enforcement, cooperation, transparency, technical assistance, etc., with an overall level of protection that is enhanced over the TRIPS Agreement. Chapter XII Electronic Commerce This chapter aims to promote the use of and cooperation in electronic commerce among the Parties by setting out provisions encouraging the Parties to improve trade administration and procedures through electronic means; requiring the Parties to create an enabling environment for e-commerce, to protect the personal information of e-commerce users, to provide protection for on-line consumers and to enhance regulation of, and cooperation in respect of, unsolicited commercial electronic messages; and proposing relevant measures on the location of computer facilities, cross-border transmission of information via location of computer facilities, cross-border transmission of information by electronic means; and proposed directions for relevant measures and created regulatory policy space. Parties also agreed to maintain the current practice of not imposing tariffs on e-commerce in accordance with the decision of the WTO Ministerial Conference. Chapter XIII Competition This chapter sets out a framework for Parties to cooperate on competition policy and law in order to enhance economic efficiency and consumer welfare. It establishes the obligation of parties to establish or maintain laws or institutions to prohibit activities that restrict competition, while recognizing the sovereign right of parties to enact and enforce their own competition laws and allowing for exclusions or exemptions on the basis of public *** policy or public *** interest. This chapter also deals with consumer protection, and Parties are obliged to adopt or maintain domestic laws and regulations to suppress misleading conduct, or false or misleading descriptions in trade; to promote the understanding and use of consumer redress mechanisms; and to cooperate on matters relating to the safeguarding of the ****same interests of consumers. Chapter XIV Small and Medium-sized Enterprises The Parties agree to provide at the Agreement a platform for SME talks for economic cooperation projects and activities aimed at enhancing the utilization of the Agreement by small and medium-sized enterprises (SMEs) and benefiting from the opportunities created by the Agreement, and mainstreaming SMEs into regional supply chains. The Agreement emphasizes the full *** enjoyment of RCEP information relevant to SMEs including the content of the Agreement, laws and regulations in the areas of trade and investment relevant to SMEs, and other business-related information relevant to SMEs' participation in, and benefit from, the Agreement. Chapter 15 Economic and Technical Cooperation This chapter provides a framework for achieving ****similar development of the RCEP countries, contributing to the parties' ability to fully benefit from the implementation and utilization of the Agreement and to narrow the development gap between the parties. Under this chapter, the Parties will implement technical assistance and capacity-building projects to promote the inclusive, effective and efficient implementation and utilization of the Agreement in all areas, including trade in goods, trade in services, investment, intellectual property rights, competition, small and medium-sized enterprises and e-commerce. Priority will also be given to the needs of least developed countries. Chapter XVI The Agreement on Government Procurement recognizes the role of government procurement in advancing regional economic integration for economic development, and will focus on improving the transparency of laws, regulations and procedures, and promoting cooperation among the Parties on government procurement. This chapter contains provisions for consideration with a view to future refinement of this chapter to promote government procurement. CHAPTER 17 GENERAL PROVISIONS AND EXCEPTIONS This chapter sets out the general provisions applicable to the RCEP Agreement as a whole, including the transparency of the Parties' laws, regulations, procedures and administrative rulings of general application, the establishment of an appropriate review and appeal mechanism in respect of the administrative procedures of each Party, the protection of confidential information, and the geographic scope of application of the Agreement. At the same time, this chapter incorporates into this Agreement, mutatis mutandis, the general exceptions set forth in Article XX of GATT 1994 and Article XIV of GATS. Parties may take such actions or measures as they deem necessary to protect their essential security interests. This chapter also allows Parties to take certain measures in the face of serious imbalances in the balance of payments, external financial difficulties or threats. CHAPTER 18 INSTITUTIONAL PROVISIONS This chapter sets out the institutional arrangements for the RCEP, as well as the structure of the Council of Ministers, the Joint Committee and other committees or sub-committees. The Joint Committee will oversee and guide the implementation of the Agreement, including overseeing and coordinating the work of new or future subsidiary bodies established under the Agreement. CHAPTER XIX DISPUTE SETTLEMENT This chapter is intended to provide effective, efficient and transparent procedures for the settlement of disputes arising under the Agreement. It contains clear provisions on the choice of relevant forums for dispute settlement, consultations between the parties to the dispute, on good offices, conciliation or mediation, the establishment of panels of experts, and the rights of third parties. This chapter also provides detailed provisions on the functions of the panel, the panel's procedures, the implementation of the panel's final report, the implementation review procedure, compensation, and the suspension of concessions or other obligations. Chapter 20 Final Provisions This chapter mainly covers the treatment of annexes, appendices and footnotes; the relationship between the Agreement and other international agreements; the general review mechanism; and the entry into force, depository, amendment, accession and denunciation provisions of the Agreement. The Secretary-General of ASEAN is designated as the custodian of the Agreement and is responsible for receiving and distributing documents, including all notifications, requests for accession, ratifications, acceptances or approvals, to all parties. The entry-into-force clause of the treaty stipulates that the agreement requires at least six ASEAN member states and three ASEAN FTA partners to deposit their instruments of ratification, acceptance or approval before it can formally enter into force.