Phl should take advantage of Asean chairmanship

The Asian Development Bank ( ADB) has urged the Philippines to take advantage of its position as chair of the ASEAN Summit this year to rally support in the subregion for the China- led Regional Comprehensive Economic Partnership (RCEP).

During a policy forum hosted recently by the Philippine Institute for Development Studies ( PIDS), Gane- shan Wignaraja an advisor at ADB’s Office of the Chief Economist, said pushing for the signing of the mega-trade deal would greatly ease the flow of trade and investments in the region and promote resistance to protectionist measures.

RCEP, considered as the rival free trade agreement of the shelved trans-pacific partnership (TPP) led by the US, seeks to group into a trade bloc the 10 ASEAN countries, China, India, Japan, South Korea, Australia and New Zealand.

Getting the RCEP signed would send a strong signal to the international community that Asian economies are open to business and are resisting protectionist policies, Wignaraja said.

“The Philippines as chair of the ASEAN this year has the wonderful chance to try to push for for this deal to be signed. And that would be a real feather in the cap for the Philippines if it is achieved,” he said. “And if that were to happen, that might give the US a chance to pause on its protectionism.”

RCEP, he said, would facilitate greater access across member states through the rationalization of tariff schedules and rules of origin. This particularly benefits exporters of raw materials to member countries like China that are now transitioning to higher levels in the global value chain.