Literary Digital Silk Road Security Think Tank/Xi’an Jiaotong University Suzhou Information Security Law School Julie Xinma Minhu
As the world’s largest free trade agreement, the Regional Comprehensive Economic Partnership (RCEP) covers With a population of approximately 2.2 billion and 15 countries, it will effectively strengthen the real economic ties among member countries, increase the market size of the Asia-Pacific region, and promote regional economic recovery after the COVID-19 epidemic. At the same time, RCEP is also a powerful counterattack against the protectionist trend of using tariffs and other measures to set up trade barriers, and is the backbone of resistance to trade tensions and the impact of the epidemic. Based on the important role of global supply chains in this process, RCEP clearly expresses its stance on promoting the smoothness and security of regional and international supply chains, and has made relevant provisions in various aspects such as trade, investment and dispute resolution, showing the world Efforts and positive messages to reduce the slowdown in globalization. As Robin Xing, chief China economist at Morgan Stanley, and his team said in a November report, RCEP could help speed up negotiations on other trade agreements — such as the China-Japan-Korea Free Trade Agreement and the China-E.U. Bilateral investment treaties. Shortly after the RCEP was signed on November 15, 2020, the China-EU Bilateral Investment Agreement was also announced as completed on December 30.
RCEP members include not only ASEAN members, China and other Asian countries, but also Western countries such as Australia and New Zealand, and the content is very inclusive. The international community has fully affirmed the important role of RCEP in promoting regional and international supply chains. Studying the success of the relevant content of the agreement has important reference significance for my country to ensure the international ICT supply chain required for the development of the digital economy.
1. Promoting regional and global supply chains as a basic principle and goal
1. The principles of promoting participation in regional and global supply chains determined in the General Preface
RCEP has a clear beginning. In the preamble, it closely links the goals of this agreement with ensuring supply chains, and expresses its own distinctive principles of promoting participation in regional and global supply chains. Its preamble clearly states that in order to “expand and deepen economic integration in the region, enhance economic growth and equitable economic development”, RCEP “enhances the economic partnership of the Parties to create new jobs, improve living standards and improve "The general welfare of all peoples", the agreement "seeks to establish clear and mutually beneficial rules to facilitate trade and investment, including participation in regional and global supply chains".
According to the full text of RCEP, its principles of promoting participation in regional and global supply chains include and are reflected in the following three aspects: First, RCEP affirms the important role of smooth regional and global supply chains in promoting trade and investment. , contribution to regional economic development, and deepening regional economic integration through promoting supply chains, which clearly expresses the member states' rejection of "deglobalization." Secondly, the agreement guarantees the supply chain mainly through clear rules, that is, based on rule-based governance, it facilitates the participation of regional and global supply chains in a mutually beneficial manner. Third, RCEP adopts legal realism based on the rule of rules, that is, the agreement does not simply pursue equality, but fully recognizes mutual benefit based on differences between countries and helps the least developed countries. Therefore, the preamble of RCEP also specifically states that it is necessary to help least developed country Parties participate in this agreement, including expanding these least developed countries’ “trade and investment opportunities and participation in regional and global supply chains.”
2. Aiming to strengthen the regional and global supply chain environment as a specific link goal
In addition to the principles of promoting participation in regional and global supply chains defined in the preamble, in key transnational links of the supply chain - —In the relevant provisions of customs procedures, RCEP directly writes the strengthening of the global and regional supply chain environment into the goal of "Chapter 4 Customs Procedures and Trade Facilitation". Article 2(5) of this chapter stipulates that it is necessary to "facilitate the conclusion of the contract trade between the parties, including through strengthening the regional and global supply chain environment ”
To enable member customs to achieve this goal, the Agreement provides for the consistent application and implementation of customs laws and regulations within their customs territories. applicable, requiring the customs of the contracting parties to promptly publish the following information on the Internet to the extent possible in a non-discriminatory and easily accessible manner so that governments, traders and other interested parties can know it; set up consultation points to provide reasonable consultation, and require Each Party shall ensure that its customs procedures and practices are predictable, consistent and transparent, facilitate trade through measures including expedited clearance of goods, and provide trade facilitation measures to certified economic operators. In addition, RCEP's customs procedures also include an advance ruling system, a release system within 48 hours after the arrival of goods and information submission, a risk management system, measures and a contact point system; and through various customs cooperation measures, as much as possible Reduce the risk of supply chain disruption and promote smooth regional and global supply chains.
2. Focus on ensuring the security of regional and international supply chains in trade links
To maintain and promote the smoothness and security of regional and international supply chains, we need to fight back against arbitrary Protectionism that erects trade barriers. With the risk of supply chain disruption brought about by the current epidemic and the United States disrupting the global supply chain under the pretext of security issues, RCEP focuses on regulating the facilitation of trade in goods and clarifying non-tariff measures that can be taken to prevent the use of tariffs and other measures to set up trade barriers. , consolidate the security of regional and global supply chains, and resist the impact of various risks on the supply chain.
First, RCEP adopts anti-trade barrier measures to ensure smooth supply chains. The main measures include: (1) Significantly reducing tariffs between member countries by granting most-favored nation treatment or preferential tariff treatment for "original goods". (2) Avoid the risk of non-tariff barriers becoming a regional supply chain by specifically stipulating non-tariff barriers. (3) Gradually eliminate tariffs. The degree of openness of service trade and foreign direct investment among RCEP member countries is significantly higher than that of the previous "11" free trade agreement. Zero tariffs on goods trade will cover about 90%, and tariffs will be gradually eliminated within 20 years. You can implement it at your own pace.
Secondly, RCEP has effectively strengthened the real economic ties between member countries through the transparency and consistency of trade rules and implementation assistance for underdeveloped countries. Today, China is the only major economy with positive economic growth. RCEP’s strengthening of international trade will increase member states’ exports to China, thereby promoting the spillover effect of China’s economic growth on other regional countries and paving the way for regional economic recovery after the COVID-19 epidemic. Inject new impetus. Furthermore, the agreement will also synchronize the supply chain issues of regional members affected by the decoupling of China and the United States, thereby helping to rebuild regional supply chains and reduce the region's dependence on the US and EU markets.
Third, RCEP will also replace some bilateral trade agreements in the region, with a single set of rules that will replace complex regulatory networks and provide a set of "best practice" rules for trade and customs procedures. , thus conducive to the recovery and development of the supply chain. Taking rules of origin as an example, there are currently 27 free trade agreements and 44 bilateral investment agreements in the region. The unification and standardization of rules of origin in RCEP will be conducive to trade and investment facilitation, while promoting the development of regional value chains. Products produced in Indonesia that previously contained Australian components could have been subject to tariffs based on rules of origin elsewhere, but the new RCEP framework will remove this complexity and encourage manufacturers and retailers to source supplies within the trading area. suppliers and partners. This will further reduce supply chain costs in the region and further increase its substitutability.
3. Comprehensively promote regional and international supply chain security from investment to property rights protection
The smoothness of regional and international supply chains requires enterprises in the supply chain, Suppliers, sellers, and even final consumers can respond quickly to the needs of regional and global consumers to achieve smooth business flow, logistics, capital flow, and information flow. Therefore, in addition to reducing various tariff and non-tariff trade barriers, supply chain protection also requires balancing the relationship between foreign investment, technology protection and security. The scope of RCEP is very broad, with chapters including investment and its security exceptions, protection of intellectual property and undisclosed information, e-commerce and network security, etc., thereby comprehensively promoting the smoothness of regional and international supply chains.
In the investment process, since an effective supply chain network will accelerate financial financing and utilization efficiency, the smoothness of the supply chain and the protection of the investment environment complement each other. Chapter 10 "Investment" of RCEP stipulates national treatment and most-favored nation treatment among member states, and further stipulates investment treatment, freedom of capital transfer, loss compensation, expropriation and prohibition of performance requirements. It is particularly important to point out that in the prohibited performance requirements, it is stipulated that the transfer of specific technologies, production processes or other know-how to persons within its territory shall not be forced; the transfer of specific technologies, production processes or other know-how to persons within its territory shall not be forced; the transfer of specific technologies, production processes or other proprietary knowledge shall not be forced from the territory of the Party to a specific regional market or The world market provides goods produced by investment. "In order to balance the relationship between security and promotion of investment, Article 15 Security Exception clearly stipulates: "Notwithstanding the provisions of Chapter 17, Article 13 Security Exception, no provisions of this Chapter shall be interpreted. To: require a Party to provide or permit access to any information that it determines would be contrary to its fundamental security interests; or to prevent a Party from applying measures it deems necessary for the following purposes: (1) To fulfill its mission of maintaining or restoring international peace or security obligations; or (2) protect its own fundamental security interests.”
In the aspect of intellectual property protection, RCEP clearly links the goal of protecting intellectual property rights with deepening economic integration cooperation to “reduce the distortions and obstacles to trade and investment”, thereby achieving a balance between promoting technological development and supply chain security. For example, in Article 7 of this Chapter on National Treatment, the Agreement stipulates that a Contracting Party may request exceptions to national treatment with regard to judicial and travel procedures, but such provisions “are necessary to ensure compliance with its laws and regulations that are not inconsistent with this Chapter; and not Implemented in a manner that constitutes a disguised restriction on trade.
"In addition, focusing on the national development realities of the region, RCEP stipulates a transition period and technical assistance for the protection of intellectual property rights in least developed countries. Section 13 of this chapter "Transition Period and Technical Assistance" provides specific parties with five years or five A transition period of less than 20 years and provide technical assistance to reduce the negative impact of high-level protection of intellectual property rights on the least developed countries, thereby ensuring the security of the supply chains of these countries.
In the business sector, as informatization and paperless become a major trend in economic globalization, e-commerce has become an important link in global supply chain management. RCEP Chapter 12 E-commerce will “promote e-commerce between contracting parties. and the broader use of e-commerce globally; working to create an environment of trust and confidence in the use of e-commerce; and strengthening cooperation among Parties in the development of e-commerce" as goals. Specific content includes e-commerce in member states Cooperate, standardize and recognize the legal effect of paperless trade, electronic certification and electronic signatures, ensure related trade facilitation, etc. RCEP also protects online consumers, supervises unsolicited commercial electronic information, carries out network security cooperation, and promotes cross-border trade. Regulations on cross-border e-commerce and other aspects balance the relationship between data security and business cooperation.
From the perspective of global economic development, the signing of RCEP is at a critical moment. Due to the impact of the epidemic, cross-border businesses around the world are facing a crisis. Companies are rethinking their investment strategies; the integration and regionalization of RCEP provide an attractive option for multinational companies and enhance the economic status of countries in the region, while RCEP includes support for e-commerce, intellectual property and technological cooperation. The competitive advantages in market access of contracting countries such as China, including advantages in the fields of Internet platforms and communication technologies, will further promote local economic development and change the global trade structure and value that has always regarded Western countries as the final trade destination. chain and promote the optimization and integration of the regional supply chain
4. The RCEP dispute prevention and resolution mechanism guarantees supply chain security
Regional and global supply chains. It is the integration of interests scattered across countries from raw material suppliers to final consumers. The risks in this process are multi-faceted. In addition to minimizing supply chain risks from the perspective of trade, RCEP also sets up a variety of dispute prevention and resolution mechanism guarantees. Supply chain security.
The framework of RCEP’s dispute prevention and resolution mechanism has three main layers:
The first layer is to prevent disputes or Conflict. In terms of consistency, as provided in Chapter 4 "Customs Procedures and Trade Facilitation", the goal is to ensure the predictability, consistency and transparency of the application of customs laws and regulations of each Party, requiring each Party to It should ensure that its customs laws and regulations are implemented and applied consistently within its customs territory. In the "Dispute Settlement" section of Chapter 19, the report of the Implementation Review Panel shall specify whether the measures taken by a party to fulfill its obligations are consistent with the content of this Agreement. Be consistent. In terms of best practices, RCEP promotes the exchange of "best practices" and the sharing of information among all parties in terms of customs cooperation, e-commerce cooperation, and cybersecurity cooperation to improve effectiveness, uniformity, and consistency.
The second level is to initially resolve disputes through consultation and other communication channels. In all areas involved, RCEP has set up consultation channels to prevent and resolve disputes in response. For example, in Chapter 4 Customs Procedures and Trade Facilitation, Article 20 specifically provides for the "Consultation and Contact Point" system, which stipulates: "A Party may at any time request to consult with another Party on the operation and implementation of this Chapter." "If such consultations cannot resolve the matter, the Party requesting consultations may refer the matter to the Goods Committee" in Chapter 7 Trade Remedies. , Article 6 specifically stipulates the consultation mechanism: "Any Party may request consultation with another Party on any matter described in paragraph 1 of Article 3 (Scope) of Chapter 19. A respondent shall The prosecution's request for consultation shall be given due consideration and sufficient opportunity for such consultation shall be given. ”
The third level is to set up an adjudication process to resolve disputes through appeals. The main features of RCEP's dispute prevention and resolution mechanism are to fully protect the equal status of all member states, to be legal and development-oriented, to respect the different development conditions of various countries, and to emphasize pre-litigation communication and negotiated settlement. Chapter 19 of the Agreement specifically stipulates the dispute settlement system, including the selection of venues for disputes, consultation, mediation, mediation or conciliation, establishment of expert groups, prosecution procedures, timetables, representations, hearings, suspension and termination of proceedings, and implementation of final reports. , implementation review, compensation and suspension of concessions or other obligations, special and differential treatment of least developed country Parties, etc. have been made in detail.
What is distinctive is that the dispute settlement provisions of RCEP still emphasize consultation and communication among members, and give special treatment to underdeveloped regions and countries.
In addition to the above-mentioned consultations being part of the dispute settlement provisions of Chapter 19, in the chapter on e-commerce, Article 17 Dispute Settlement clearly stipulates: “If the parties have any disagreement regarding the interpretation and application of this chapter, the parties concerned shall First, negotiate in good faith and try their best to reach a mutually satisfactory solution. "And, "No Party shall resort to dispute settlement in Chapter 19 (Dispute Settlement) for any matter arising under this Chapter." Special and differential treatment for the least developed regions and countries is a manifestation of RCEP's advocacy of "factual justice". In the "Dispute Settlement" chapter, Article 18 specifically provides for "special and differential treatment of least developed country Parties", stipulating: "In determining the causes of disputes involving least developed country Parties, and in the settlement of disputes At all stages of the procedure, special consideration shall be given to the special circumstances of least developed country Parties and Parties shall exercise appropriate restraint when raising matters involving least developed country Parties under this procedure.” In Chapter 17. Article 16 of the Treaty of Waitangi is also set out in the General Provisions and Exceptions, which states: “Nothing in this Agreement shall prevent New Zealand from taking such measures as it considers necessary to grant more favorable treatment to Maori in relation to matters covered by this Agreement , including the performance of its obligations under the Treaty of Waitangi." Accordingly, "the Parties agree that the interpretation of the Treaty of Waitangi, including the nature of the rights and obligations arising thereunder, shall not apply. The dispute settlement provisions of this Agreement. “These protective provisions will undoubtedly promote cooperation between the least developed regions and countries and other countries in the region and promote their development. From a long-term perspective, it meets the needs of a rich and complete regional and global supply chain.
Conclusion: A future that still faces challenges
Undoubtedly, the international benefits brought by RCEP are multifaceted and will help develop countries affected by the new coronavirus. The supply chain disrupted by the epidemic and the decoupling between China and the United States supports regional and world economic recovery. However, while we are delighted, we must also see that as regional and international supply chains are increasingly affected by geopolitics, the risks they face will become more complex. In recent years, the United States has cut off supply to China in the high-tech field, excluding China from the supply chain of core ICT technologies. India eventually withdrew from the RCEP negotiations and launched the Resilient Supply Chain Initiative (RSCI) with the other two countries in RCEP, Japan and Australia. RSCI aims to build resilient supply chains and intends to be independent from China. RSCI is also seeking more Southeast Asian countries to join, with the intention of decoupling much of the regional supply chain from China. If these countries also join the RSCI, it will affect the realization of RCEP goals and change the balance that RCEP has reached. Therefore, while studying the successes of RCEP, we must also see the challenges faced by RCEP and actively respond to them from various aspects such as diplomacy, strategy and legal formulation, so as to promote and ensure the smoothness and smoothness of regional and international supply chains in the long run. Safety.
(This article was published in the 2021 Issue 2 of "China Information Security" magazine)