RCEP Agreement enters into force for the Philippines. (Source: CGTN)

Officially coming into effect on January 1, 2022, RCEP is an ASEAN-led initiative to create the world's largest free trade area in terms of Gross Domestic Product (GDP) and market size.

The agreement accounts for nearly one-third of the world's GDP and nearly one-third of its population.

RCEP includes 10 ASEAN member countries, Australia, China, Japan, South Korea and New Zealand.

The entry into force of this agreement for all signatory countries is a clear demonstration of support for an open, free, inclusive regional market and adherence to a rules-based multilateral trading system.

Through RCEP, businesses in the region – especially micro, small and medium-sized enterprises – will benefit not only from the market-opening commitments of the signatories but also from more liberal rules of origin, thereby giving businesses more choices, increasing productivity and competitiveness.

In addition, RCEP also incorporates rules and principles that facilitate trade and investment in the region, helping to reduce transaction costs and contribute to creating stronger and more resilient supply chains.