How will the RCEP impact the global PV market?
On 15 November 2020, the leaders' Meeting of the Fourth Regional Comprehensive Economic Partnership (RCEP) was held by video.The RCEP has been formally signed by the ten ASEAN countries and 15 other countries, including China, Japan, the ROK, Australia and New Zealand, marking the official conclusion of the world's largest free trade agreement.
The Ministry of Commerce, head of the international department pointed out that in terms of trade in goods, 15 countries adopt to offer each other the goods trade liberalization make arrangement, after the agreement comes into effect area more than 90% of the goods will be finally realizes the zero tariff, and mainly immediately lower taxes to zero or lower taxes to zero for 10 years, is expected to make the RCEP free trade zone in a relatively short time all goods trade liberalization commitments.
How will the RCEP impact the PV market?
As the world's largest exporter of solar panels, China's photovoltaic industry is heavily affected by tariffs.After the sianing of the RCEP, the tariff reduction covers more than 90% of the goods. Some analysts believe that 95% or more of the dutiable goods will be included in the scope of "zero tariff" in the future, which is undoubtedly good news for China's photovoltaic market.
The 15 member countries of RCEPhave covered 2.2 billion people, with a total GDP of US $25.6 trillion, regional exports of US $5.6 trillion and foreign investment of US $370 billion, all of which account for about 30% of the global total.Therefore, the successful signing of the RCEP will mean the birth of a "super economic circle" with the largest population, the largest economic scale and the greatest development potential in the world.Against the background of anti-globalization and COVID-19 pandemic, it is not easy for the RCEP to be signed. It also reflects the determination of all member states to promote regional economic integration, uphold multilateralism and trade liberalization.It is believed that with the help of RCEP, PV will hopefully enter the era of "zero tariff".