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Boosting Onion Exports: How RCEP is Opening Doors for Qinghai’s Agricultural Trade

by Tatyana Ivanovich
January 25, 2025
in Export, News, Onion
0
Boosting Onion Exports: How RCEP is Opening Doors for Qinghai’s Agricultural Trade

In a significant step for Qinghai’s agricultural sector, 26.9 tons of onions from Qinghai Yanglu Trading Co. are poised to be exported to Malaysia, benefiting from the Regional Comprehensive Economic Partnership (RCEP) agreement. This export marks the first RCEP certificate issued by Xining Customs at the Caojiapu Airport in Qinghai Province, signaling the province’s growing role in the global agricultural market.

The RCEP, one of the world’s largest free trade agreements, brings together nations across the Asia-Pacific region, including China and Malaysia. As one of the largest free trade pacts in terms of population, trade volume, and development potential, RCEP offers significant advantages to companies like Qinghai Yanglu Trading Co. By utilizing the tariff reduction clauses, businesses can save considerably on taxes, which can make a major difference in product pricing and competitiveness in international markets.

The Role of RCEP in Enhancing Trade

Qinghai Yanglu Trading Co.’s entry into the Southeast Asian market, particularly Malaysia, is a promising example of how Chinese agricultural businesses are leveraging RCEP to expand their exports. Before the RCEP certification, negotiations with Southeast Asian countries were challenging for the company, mainly due to unfamiliarity with trade regulations. However, the support from Xining Customs, which actively engaged with the company to explain RCEP policies, made the process smoother and facilitated the company’s growth in these new markets.

The RCEP not only provides tariff exemptions but also improves trade efficiency. With the adoption of digital tools like “smart review” and “self-service printing,” businesses can quickly obtain the necessary certifications without needing to visit customs offices, enhancing operational speed. For Qinghai Yanglu Trading, this has streamlined the process, reducing delays and boosting their ability to stay competitive in the market.

Impact on the Broader Agricultural Trade Landscape

The broader implications of this development for agricultural trade in Qinghai and other regions are significant. In 2024, Xining Customs issued a total of 873 origin certificates, a 65.3% increase from the previous year. This surge in exports reflects not only the growing utilization of RCEP agreements but also an overall improvement in trade efficiency. The issuance of RCEP certificates specifically increased by 7.9%, showcasing how trade facilitation measures are empowering farmers and businesses to access global markets with greater ease.

Onions, as one of the province’s key exports, stand to benefit from these streamlined procedures. The RCEP agreement opens doors for more export opportunities, making it easier for farmers to access markets in Malaysia and beyond, all while reducing the cost burdens associated with tariffs.

The Future of Agricultural Exports

The successful export of Qinghai’s onions to Malaysia is a great example of how modern trade agreements like RCEP can reshape the agricultural export landscape. By eliminating tariffs and enhancing trade efficiency, the agreement is providing farmers with new growth opportunities in Southeast Asia. As Qinghai continues to expand its agricultural exports, leveraging RCEP will likely become an essential tool in their export strategy.

With increasing support from customs authorities and improved digital tools for trade facilitation, it’s clear that the future of agricultural exports in China, particularly in regions like Qinghai, looks promising. The positive outcomes from the onion export initiative serve as a blueprint for future agricultural trade successes.


Tags: agricultural business growthAgricultural Tradefree trade agreementsMalaysia exportonion exportsQinghai agricultureRCEPSoutheast Asia marketsTrade EfficiencyXining Customs
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