China-backed trade bloc endorsed at ASEAN
President Duterte takes swipe at US-led Trans-Pacific Partnership
President Duterte has endorsed the China-backed Regional Comprehensive Economic Partnership (RCEP) pact over the United States-initiated TransPacific Partnership (TPP) trade deal which he claimed was a “dream that was no longer there.”
At the closing ceremony of the Association of Southeast Asian Nations (ASEAN) ministerial meetings yesterday, the President endorsed the RCEP because it was a bid to spur inclusive regional growth and stand up
against protectionism.
In doing so, Duterte called for the swift conclusion of the proposed free trade pact between the Southeast Asian nations and their trading partners to promote economic prosperity “enjoyed by all.”
“We must take a serious look at the economic integration. ASEAN has a bigger stake than any other part of the world in standing up against protectionism and securing the rules of the game in the international trade,” Duterte said during the event that coincided with the 50th ASEAN celebration at the Philippine International Convention Center in Pasay City.
“The Regional Comprehensive Economic Partnership or RCEP will provide further impetus to our efforts,” he said.
The President was seen to have taken a swipe at the Trump administration’s retreat from the TPP which is a major free trade deal pushed by former President Barack Obama.
“I was reminded that the TransPacific… was a dream that was no longer there,” he said.
Until recently China and the United States were both pushing sweeping free trade deals that excluded each other.
But shortly after taking office in January, US President Donald Trump withdrew from the TPP which he described as a “job killer.”
The move delivered a hammer blow to the 11 other nations who spent seven years negotiating what was billed as the world’s largest trade deal.
In his speech celebrating ASEAN’s 50th anniversary, Duterte gave his backing to the planned trade pact backed by China and groups together the 10 ASEAN members plus India, Japan, South Korea, Australia, and New Zealand.
The RCEP and TPP have been widely perceived as rival trading blocs.
Duterte said negotiations on the RCEP must conclude swiftly as decided by RCEP leaders in 2016.
If approved, it would create one of the world’s largest free trade zones. The RCEP countries make up 46 percent of the global population and worth 24 percent of global gross domestic product.
The TPP, on the other hand, includes 11 countries including Australia, Brunei, Japan, Malaysia, New Zealand, Singapore, Vietnam, Canada, Mexico, Chile, and Peru. Before the pullout of the US, the TPP would have covered 40 percent of the global economy.
The President said ASEAN could attain its dreams of a secure, stable region with inclusive growth as long as the nations stay united.
“We want a region that is sustainable and inclusive in its growth — where no one is left behind and everyone has the opportunity [to realize] their potentials,” he said.
“As the countries of ASEAN, we jointly celebrate our 50th anniversary in many diverse ways but we must remain united. As we look back on the half-century of achievements, we look forward to a future of greater possibilities, knowing that together, we can make our dreams real,” he added.
The President also called fellow ASEAN leaders “do to more” with the people at the core of the pursuit of lasting peace and security, economic prosperity, and continued cultural development.
“Prosperity should not be the right of just a chosen few. It must be a blessing enjoyed by all,” he said. As ASEAN governments work to achieve the enabling environment for businesses to thrive, Duterte called on the private sector to play a bigger role in spurring and sustaining growth. He said public-private partnership (PPP) must be harnessed fully to lift people from poverty.
So far, the President said ASEAN has become “stronger, more vibrant, more robust” as a community despite pessimism in its early years. He said the ASEAN has propelled the region on the path towards peace, progress, and prosperity for their people.
“We proved that [what] we share [is] more valuable than our differences. We proved that our diversity is a strength rather than a weakness,” he said.
“We proved that regionalism – developed at our own pace and under our own terms and with our values – can work,” he added.
Fifty years later, Duterte said he is convinced that ASEAN will “prevail” against the new and emerging challenges facing the community.
Apart from seeing inclusive regional economic growth, Duterte said ASEAN aspires a secure region “where the people could live without fear from the lawless elements and the debilitating effects of corruption and transnational crimes.”
ASEAN also wants a stable region “where democratic institutions work, where nations regard each other with mutual respect and understanding, and where the rule of law reigns supreme in the relations between states,” according to Duterte.
“It is a journey that continues as we seek to engage with our neighbors positively in dialogue partnerships that continue to grow,” he added.