context: Catering to the potential for deeper regional economic engagement, Beijing-led RCEP (Regional Comprehensive Economic Partnership) is depicted as a mutually beneficial channel for ag trade and investment. Meanwhile, exporters to the PRC are faced with tough new measures controlling food imports. Also effective from 1 Jan, these may bring chaos to the flow of trade before RCEP's benefits are felt.
Agrifood trade is expecting a boost as RCEP took effect on 1 Jan 2022. Already accounting for 26 percent of China's ag imports in 2020, exporters can further benefit from Chinese consumers' appetite for more diversified and quality products, such as beef, lamb and dairy from Australia and New Zealand, as well as tropical fruits from ASEAN, predicts Ma Hongtao 马洪涛 MARA (Ministry of Agriculture and Rural Affairs) Ag Trade Promotion Centre director.
Chinese investors in ag production and processing will take advantage of lower barriers to entry in Southeast Asian countries, most of whom are also BRI (Belt and Road Initiative) members and hence in the PRC’s crosshairs for ag trade diversification. Firmer supply chains directly based in exporting countries will help secure food supplies, Ma anticipates.
Gearing up for RCEP, Guangzhou has now issued its first batch of certificates of origin. The certificates allow local companies to benefit from substantially lower tariff rates when exporting to RCEP member countries. RCEP is expected to advance opening up of the agricultural sector and bring development opportunities to local ag firms, according to industry commentators.
A series of provincial measures were announced earlier by Guangdong to strengthen agricultural opening up under RCEP, including an RCEP ag cooperation pilot zone and a public ag trade service platform. The trade agreement is also expected to inject dynamism into the recently launched Greater Bay Area Specialised Industrial Park located in the Guangzhou Development Zone. The park will facilitate the formation of business clusters, including in ag and rural industries.