The Asian countries are strengthening their leadership’s position in the World Economy
15 major countries of the Asian continent including China, Japan, Australia, New Zealand, South Korea as well as the members of ASEAN, countries covering more than 30% of the world population, have just signed an agreement of free trade.
While Western countries are stuck in the health crisis and the United States withdrew from the Transatlantic Free Trade Agreement 4 years ago, Asian countries have just marked a major turning point by signing a Regional Partnership Global Economic (RCEP) aiming to eliminate customs tariffs applied to most goods traded in the region. This agreement also includes the simplification of customs procedures through the adoption of preferential rules of origin. This agreement will thus boost trade and investment flows between these fifteen nations and aims to accelerate the economic integration of Asian countries.
Asia already generates more than 50% of the world’s GDP, compared to 20% 40 years ago.
This new agreement should push even more Western companies to set up in the zone in order to benefit from preferential customs tariffs if they wish to maintain and develop their market share in the Asian zone, an area which constitutes an essential growth driver compared with the European and American markets.
For more information on how to structure your operations in Asia, please contact our team at info@opkofinance.com or by phone +63 32 402 0170.
