RCEP countries seek free trade in up to 92% of all product types

COUNTRIES negotiating the Regional Comprehensive and Economic Partnership ( RCEP) agreement are considering opening up their markets to between 80% and 92% of all product categories, the Trade department said.

Department of Trade and Industry Secretary Ramon M. Lopez told Businessworld last week that the parties to the free trade agreement are working out how many products to include in RCEP.

“All countries now have proposals as to the percentages of products to be included in the free trade agreement. This means they are looking at numbers. It’s within the range of 80 to 92%,” he told Businessworld on the sidelines of a conference last week on Dec. 1.

“The ASEAN proposal is 92%, which is also the Philippine commitment,” he said, when asked for the number favorable to the Philippines.

So far, the kinds of products and services have not yet been discussed, Mr. Lopez added, but in succeeding meetings, this will continue to be narrowed down until a deal is reached.

The range is based on talks among RCEP member nations, which met in the Philippines on Nov. 3 and 4. Their next round of negotiations is set this month.

Negotiations for the trade deal began in 2012 in Phnom Penh, including the 10 members of ASEAN and six dialogue partners: Australia, New Zealand, India, South Korea, Japan and China.

The RCEP countries account for nearly 30% of global trade and are projected to have a combined gross domestic product of about $22.7 trillion.

Meanwhile, Sergio R. OrtizLuiz, Jr. president of the Philippine Exporters Confederation, Inc., told Businessworld that 80% is “too low” an opening.

“We should be over 90%,” he said in a phone interview yesterday.

“I guess if we want to accelerate the ASEAN programs, the higher the opening the better. But there will be resistance. I’m sure we’re part of the resistance because there are some products that we want to protect, like sugar.”

The deal under negotiation is seen rivaling the Trans- Pacific Partnership ( TPP) — a deal of similar size led by US, now thought to be endangered with the election of Donald J. Trump to the presidency.

The potential members of the Trans-Pacific Partnership cover 40% of the world economy.

It was signed by 12 countries in February, and is pending ratification until 2018 by at least six countries that account for 85% of the combined gross domestic production of the TPP nations.

The 12 TPP signatories are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the US and Vietnam. The Philippines is not a signatory but has expressed interest to join.

Mr. Lopez said that the country is better off with RCEP, noting that it is “more relevant because it’s our region.”

“This is better. This is what we’ve been prioritizing ever since. The Philippines never has been a part of the TPP. We were not part of the first batch so it’s okay if TPP doesn’t go ahead.” —