Japanese Companies Benefit From RCEP
As Thailand continues to solidify stronger and better trading partnerships, Japanese companies now benefit from the new RCEP deal.
Currently, around 6 thousand Japanese companies have a base in Thailand. Last year, 25 billion USD was recorded in Japanese exports from Thailand. However, this year a further 10% growth is expected.
As of 2022 a new trade agreement has been established which will give Japanese companies great benefits. The Regional Comprehensive Economic Partnership (RCEP) has been established. The Thai Ministry of Commerce is now promoting this privilege among exporters, in particular, the companies that ship to Japan.
This is a radical new trade deal of which Thailand, ASEAN countries, plus five trade partners are a part of, which includes Japan.
The RCEP deal is currently being promoted by The Ministry of Commerce and the Japan External Trade Organisation (JETRO) to all Thai businesses. They are showcasing how it can benefit them. Alongside this promotion, a workshop is being launched. This is tailored to Micro, Small & Medium Enterprises (MSMEs) to help them explore these new opportunities for trade.
So far a mixture of 100 Thai and Japanese owned businesses that operate in Thailand have joined this workshop. The workshop will also highlight the rules and regulations in relation to the benefits, particularly on taxes. That being said, it is important to ensure your business has the correct insurance for any and all situations which may arise. There are various types of insurances that can allow you to rest assured your company shall be safe when venturing into new territory.
Around 90% Thai-Japanese exporting companies have already been able to enjoy fantastic benefits via an existing trade deal; Japan-Thailand Economic Partnership Agreement (JTEPA), the ASEAN-Japan Comprehensive Economic Partnership (AJCEP). The RCEP is another “string to the bow” for all Japanese companies to enjoy further benefits.
Between January to May the export companies have already been applying the new export benefits to their trading. The amount totaling to 46.47 million USD in various types of canned fish and clothing.
Thailand Insurance Service is always happy to answer any questions on these policy issues and steer buyers towards making informed insurance purchase decisions.