A woman acknowledges receipt of goods from a Best Inc employee in Kuala Lumpur in July.  Best Inc, headquartered in Hangzhou, is a Chinese integrated supply chain and logistics solutions provider. [Photo provided to China Daily]

Fifteen Asia-Pacific countries, including China, all 10 ASEAN countries, Japan, South Korea, Australia, and New Zealand, signed the Regional Comprehensive Economic Partnership (RCEP) agreement, the world's largest free-trade deal, on Nov 15.

As one of China's most export-oriented provinces, Zhejiang is expected to seize on the opportunities offered by the RCEP to maximize future trade growth.

The most immediate effects of the RCEP are lower tariff rates and more vibrant international trade.

In early November, a foreign trade company based in Yiwu, Zhejiang province, exported a batch of kitchen supplies to the Philippines. Because the shipment had a place-of-origin certificate issued by the Yiwu customs office, which is recognized by the bilateral free trade agreement, a considerable amount of tariffs were waived.

"Zhejiang issued 1.03 million place-of-origin certificates like this in 2019, leading to 18 billion yuan ($2.74 billion) in tariff exemptions for $228.6 billion worth of goods exported by the province," said an official from the Hangzhou customs office. The official believes the RCEP will benefit many more Zhejiang businesses, as the agreement stipulates that the proportion for zero-tariff products should exceed 90 percent throughout the 15 Asia-Pacific countries.

The RCEP has, for the first time, formed a unified set of rules on trade and investment that encompass the entire region, said Xu Jiafeng, director of the economic research institute at the Zhejiang Academy of Social Sciences.

Shaoxing Keqiao Hengyuan Textile Co exports around $50 million worth of cloth annually to Southeastern Asian countries such as the Philippines and Vietnam, where it is processed before ultimately hitting the European and North American markets. According to the company's general manager Mao Jigang, the RCEP will further reduce tariffs on the cloth in Southeast Asia, thereby increasing its market competitiveness in Europe and North America.