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The Department of Trade and Industry is confident of Senate concurrence to the ratification of the Regional Comprehensive Economic Partnership Agreement
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This, after the measure’s sponsorship by Senate President Juan Miguel Zubiri and Senate President Pro Tempore Senator Loren Legarda
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Trade Secretary Alfredo Pascual expressed support for the senators’ proposal to set up an Oversight Committee on RCEP implementation
The Department of Trade and Industry is confident of Senate concurrence to the ratification of the Regional Comprehensive Economic Partnership (RCEP) Agreement, following the measure’s sponsorship of Senate President Juan Miguel Zubiri and Senate President Pro Tempore Senator Loren Legarda.
In a statement, DTI said Zubiri in a sponsorship speech on February 16 noted the “Philippines cannot afford to isolate itself from the rest of the world or even send a signal to that effect”, adding the agreement is supported by various trade and industry associations in the country and that international bodies and organizations have recognized its importance.
The RCEP is one of the biggest trade deals in history, covering a market of 2.2 billion people with a combined size of US$26.2 trillion or 30% of the world’s gross domestic product. The deal will improve market access with tariffs and quotas eliminated in over 65% of goods traded, and will make business predictable with common rules of origin and transparent regulations. This aims to encourage firms to invest more in the region, including building supply chains and services, and to generate jobs.
ASEAN, trade partners sign historic RCEP pact
As the only RCEP signatory state that has not yet ratified the agreement, Zubiri called upon his colleagues to support the agreement, noting that Thailand, Cambodia and Malaysia have already reported gains from their participation. The Philippines, on the other hand, is at a “disadvantage and missing out on a lot of opportunities,” he said.
The agreement “provides a stable platform so that countries in the region, which account for 30 percent of global trade, can optimize their participation in the global economy or, more specifically, the global value chain.”
In her sponsorship speech, Legarda said RCEP underwent consultations and discussions covering eight years, resulting in a negotiating outcome that would provide numerous economic opportunities for the Philippines while protecting the country’s interests.
For instance, while RCEP offers better market access for key Philippine agricultural products, sensitive agricultural products were excluded from further liberalization, she said.
To fully utilize the opportunities provided by the RCEP Agreement, Legarda emphasized the “need to create comparative advantages for our economic sectors. It all boils down to finding our niche and seizing opportunities, and defining our role in the regional and global marketplace.
“It binds us with the other participating countries — will help us achieve the right conditions to expand our markets for goods and services, create more jobs, build opportunities to strengthen the various economic sectors in ways that will make them more competitive, and more importantly, assist our MSMEs in participating in cross-border trade, as well as in regional value chains.”
Meanwhile, Trade Secretary Alfredo Pascual welcomed Zubiri and Legarda’s proposal to set up an Oversight Committee on RCEP implementation to ensure appropriate assistance programs for local stakeholders, especially the agriculture sector, are provided.
He said “RCEP will greatly complement the country’s national policies and programs in agriculture, MSMEs, services, e-commerce, intellectual property, competition, and sustainable development. These, in turn, will facilitate the entry of more foreign investments that will aid in employment generation.”
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