I. What is RCEP?
On November 15, 2020, after 8 years of negotiations, RCEP (Regional Comprehensive Economic Partnership) was officially signed. As the largest free trade agreement in the world, it aims to establish a unified market of 16 countries by reducing tariffs and non-tariff barriers.
II. Members of RCEP
Ten countries from ASEAN (Association of Southeast Asian Nations), including Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam, plus China, Japan, South Korea, Australia, New Zealand, India.
III. How does RCEP affect the magnesium oxide board industry?
With the sign of RCEP, the member countries agree to reduce tariffs and non-tariff barriers. It directly reduces the cost of exporting and importing among the members.
For example, currently most MgO board factories in China use raw materials produced locally. With the tariff reduction, they can import cheaper raw materials from other member countries and then produce MgO boards with price advantages for exporting.
MgO board is becoming more and more popular and important in Australia due to upgraded fire protection policies after the great forest fire. Therefore, the tariff reduction also facilitates the MgO board business between China and Australia.
IV. Future cooperation
Suparna is dedicated to providing RCEP members and other countries with quality and durable MgO boards. We are looking forward to doing business with customers from all over the world.
