New logistics opportunities for Chinese food exports to Southeast Asia under the RCEP agreement

I. Overview of the RCEP agreement
As the world’s largest free trade agreement, the Regional Comprehensive Economic Partnership (RCEP) will officially take effect on January 1, 2022. This agreement covers China, Japan, South Korea, Australia, New Zealand and the ten ASEAN countries, creating unprecedented convenient conditions for Chinese food exports to Southeast Asia.

II. Growth in logistics demand due to tariff reductions
Tariffs on agricultural products have been significantly reduced: Under the RCEP framework, the average tariff of Southeast Asian countries on Chinese agricultural products has dropped from 12.8% to 0.5%, stimulating a significant increase in food exports

The advantages of processed foods are highlighted: China’s price-competitive processed foods such as condiments and frozen foods will usher in an export peak

Demand for timeliness of fresh food: The increase in exports of fresh products such as fruits and aquatic products has put forward higher requirements for cold chain logistics

III. Opportunities for facilitation of logistics customs clearance
Simplified customs procedures: RCEP has unified the rules of origin and implemented “approved export “Business” system, customs clearance time is shortened by an average of 20-30%

Inspection and quarantine standards coordination: mutual recognition of food standards among member countries, reducing technical trade barriers

Electronic certificate intercommunication: promote electronic certificates of origin, realize “paperless trade”, and improve logistics efficiency

IV. Development opportunities of emerging logistics models
Construction of cross-border cold chain logistics system:

Regular operation of cross-border railway cold chain trains such as China-Laos Railway

Cooperative construction of cold chain storage facilities in Southeast Asian ports

Popularization of full-process temperature control technology

Optimization of regional logistics hub layout:

Southwest China (such as Guangxi and Yunnan) as a cross-border railway facing ASEAN Improved status of logistics hub

Layout of forward warehouses for cross-border e-commerce in major cities in Southeast Asia

Improvement of multimodal transport network:

Improved efficiency of land-sea transport channels (such as China-Singapore interconnection project)

Connection between China-Europe Express and Southeast Asian logistics network

V. Opportunities of digital logistics solutions
Application of blockchain traceability system: meet the traceability needs of Southeast Asian consumers for food safety

Integration of intelligent logistics platform: one-stop solution to cross-border transportation, warehousing, customs clearance and distribution problems

Big data demand forecast: optimize logistics resource allocation based on regional consumption data

VI. Challenges and suggestions for response
Coping with infrastructure differences: invest in local cold chain facilities in Southeast Asia and establish a standardized logistics system

Cultivate compound talents: professionals familiar with RCEP rules, Southeast Asian markets and cross-border logistics

Risk management system: establish emergency logistics plans to deal with regional emergencies (such as epidemics and natural disasters)

VII. Conclusion
The implementation of RCEP has created a historic opportunity for China’s food exports to Southeast Asia. Logistics companies should seize the policy dividends such as tariff reductions, customs clearance convenience, and infrastructure interconnection to build an efficient, intelligent and green cross-border food logistics system to help Chinese food companies deeply explore the Southeast Asian market.

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