RCEP Tariff Cuts to Give Tailwind to Japanese Auto Industry
Tokyo, Nov. 5 (Jiji Press)--Tariff cuts under the Regional Comprehensive Economic Partnership free trade deal among Asian and Oceanian countries will give a tailwind especially to Japan's auto industry, Japanese government estimates show.
The deal, set to take effect Jan. 1 next year, will abolish tariffs on 91 pct of items, including auto parts and many other industrial goods.
The RCEP involves 15 nations--Japan, China, South Korea, Australia and New Zealand plus the 10 members of the Association of Southeast Asian Nations.
The RCEP is estimated to raise Japan's gross domestic product by 15 trillion yen, about twice the estimated boost of 8 trillion yen from the 11-nation Trans-Pacific Partnership free trade agreement, which includes seven RCEP members such as Japan and Australia.
The difference is due to the participation of major economies not involved in the TPP, such as China, South Korea and Indonesia, according to the Japanese Foreign Ministry.
[Copyright The Jiji Press, Ltd.]