Brunei Free Trade Agreement
Signed in November last year, RCEP is a mega trade agreement between 10 ASEAN member states, namely Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam, as well as China, Japan, South Korea, Australia and New Zealand. Bilaterally, Brunei Darussalam has concluded an Economic Partnership Agreement with Japan (the Brunei-Japan Economic Partnership Agreement or “BJEPA”) and a plurilateral agreement with Chile, New Zealand and Singapore (the Trans-Pacific Strategic Economic Partnership or more commonly known as “P4”) BANDAR SERI BEGAWAN, October 12 (Xinhua) — Brunei Darussalam approved the Regional Comprehensive Economic Partnership Agreement (RCEP) after depositing its instrument of ratified by the Secretary-General of the Association of Southeast Asian Nations (ASEAN) on 11 October. RCEP members have expressed their determination to ratify the agreement before the end of this year and to push for its entry into force by January. 1, 2022. TPP partner countries share a common vision for a next-generation comprehensive regional agreement that liberalizes trade and investment and addresses new and traditional trade issues and challenges of the 21st century. Once completed, the TPP will further improve trade and investment among TPP partner countries, foster innovation, economic growth and development, and support job creation and preservation. “Brunei is the largest regional free trade agreement in the world, covering about 30% of global GDP and about a third of the world`s population, and Brunei should benefit from RCEP as it will expand and deepen our economic relations among members and provide new opportunities for our producers and businesses, in particular in terms of market access given the degree of liberalization of trade in goods. Services and investments,” Mofe said. Brunei Darussalam views free trade agreements (FTAs) as an essential part of its foreign trade policy aimed at maximizing the potential of free and open trade for its people in an ever-globalizing world. With a relatively free and open trading system, as well as a small but well-trained workforce, Brunei Darussalam sees engagement in free trade agreements as an important step in ensuring that its employees, goods, services and investments continue to have access to larger markets around the world.
A press release from the Brunei Ministry of Finance and Economy (MoFE) said on Tuesday: “Brunei`s timely ratification of RCEP, the world`s largest free trade agreement, demonstrates our strong commitment to supporting the region`s post-pandemic recovery efforts, strengthening our economic and trade ties, creating new opportunities for our businesses and supporting an inclusive and gender-based multilateral trading system. menstruation. The P4 has also concluded subsidiary agreements, namely the Environmental Cooperation Agreement and the Memorandum of Understanding on Labour Cooperation, to reflect the common desire to promote and promote sound labour and environmental practices. These agreements establish mechanisms for continuous cooperation and dialogue on labour and environmental issues. Once the agreement enters into force, it will eliminate tariffs on up to 90% of goods traded between its signatories over the next 20 years. Enditem Brunei Darussalam recently concluded negotiations on the Trans-Pacific Partnership (TPP), a free trade agreement that currently involves 11 other countries, namely Australia, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam. Together, the TPP partner countries represent a market of 800 million people and a combined GDP of nearly 40% of global GDP. Ratifications by at least six ASEAN member countries and three of the other five member countries are required for the trade agreement to enter into force. Brunei is also a party to the negotiations on the Regional Comprehensive Economic Partnership (RCEP), an ASEAN+6 trade agreement (Australia, people`s Republic of China, India, Japan, Republic of Korea and New Zealand). The free trade pact “establishes a modern, comprehensive, high-quality and mutually beneficial economic partnership between ASEAN and its Free Trade Agreement (FTA) partners,” the MoFE said.
“Brunei Darussalam is aware that its full potential can only be reached after the entry into force of the agreement and looks forward to its RCEP partners to accelerate their respective national ratification procedures for the entry into force of the agreement in due course,” the ministry said. The TPP aims to conclude a plurilateral “21st century” free trade agreement that will further liberalize and integrate the economies of the Asia-Pacific region. The TPP includes disciplines in areas such as the environment, government procurement and labour, among others. The scope also includes new “cross-cutting issues” that were not previously included in other free trade agreements, such as development, regulatory coherence, competitiveness and state-owned enterprises, making the TPP the most comprehensive agreement Brunei Darussalam is currently negotiating. Following the TPP, Brunei would give Darussalam access to markets such as the United States, Canada, Mexico and Peru, where it is also hoped that the TPP will pave the way for the eventual achievement of APEC`s goal of achieving an “Asia-Pacific Free Trade Area” (FTAAP). The BJEPA is Brunei Darussalam`s first bilateral free trade agreement. The Agreement was signed on 18 June 2007 by the Heads of State or Government of Brunei Darussalam and Japan and entered into force on 31 July 2008. The agreement aims to improve the investment climate in Brunei Darussalam and promote foreign direct investment (FDI) through greater predictability and transparency. Market access between Brunei Darussalam and Japan will also be improved in terms of goods (by reducing import duties) and services. The agreement, which marks the long-standing relationship between the two countries, also includes chapters on energy, improving the business environment and cooperation, which will help further strengthen bilateral relations at a higher level of partnership.
Describes the trade agreements in which this country is involved. Provides resources for U.S. companies to obtain information on the use of these agreements. As a signatory to the Trans-Pacific Strategic Economic Partnership (P4) Agreement, Brunei participates in the Trans-Pacific Partnership (TPP) negotiations with Australia, Canada, Japan, Malaysia, Mexico, Peru, the United States of America and Vietnam. To date, Brunei Darussalam has concluded ASEAN free trade agreements with Australia and New Zealand, China, India, Japan and South Korea. Brunei Darussalam has actively participated in free trade agreements both through its accession to ASEAN and on a bilateral basis. Brunei is the sixth country to ratify RCEP after Thailand, Singapore, China, Japan and Cambodia. Brunei Darussalam, which is widely regarded as an oil and gas producer in the international community, is currently pursuing a number of projects aimed at further diversifying its economy.
In this context, the Government of Brunei Darussalam strongly believes that the active cooperation of free trade agreements with a number of key strategic partners will open markets for Brunei`s exports and services and help facilitate the flow of foreign direct investment into Brunei Darussalam. .
