RCEP to benefit Chinese exports
Footwear exporters in China stand to gain from the new Regional Comprehensive Economic Partnership (RCEP).
China and fourteen other Asia-Pacific economies signed an agreement in mid-November to set up the RCEP. The other 14 countries involved are Vietnam, Japan, South Korea, the Philippines, New Zealand, Singapore, Australia, Malaysia, Indonesia, Thailand, Cambodia, Brunei, Laos and Myanmar.
This will be the largest free-trade agreement anywhere in the world and should come into force in the next two years.
It promises more closely integrated supply chains across all 15 countries, but footwear industry commentators have pointed out that a new free-trade zone between China and Japan could be of particular significance.
RCEP will allow for more than 90% of products to be mutually exempt from tariffs, although goods sold in China will still be subject to 13% value-added tax, while in Japan there will be a 10% consumption tax.
The agreement will favour high-tariff products, including shoes shipping from China to Japan.
