DTI, foreign biz groups renew call for RCeP OK

The Department of Trade and Industry (DTI) and foreign business groups made a renewed call for the approval of the Regional Comprehensive Economic Partnership (RCEP) agreement as Congress resumed sessions yesterday.

In an interview with Radyo 5, Trade Secretary Ramon Lopez said it is important for the country to join the RCEP now.

RCEP, which would create the world’s largest free trade area, represents 30 percent of global gross domestic product.

“Every investment being considered for the Philippines will locate elsewhere and with every decision like that, we will be losing an opportunity here in the Philippines. That is our reminder for every delay we are experiencing [in RCEP participation],” Lopez said.

He said the non-participation in the mega trade deal could also lead to the country losing its market share for exports including agricultural products as those coming from RCEP member countries would gain market access and enjoy lower tariffs.

In a statement, the Joint Foreign Chambers (JFC) urged the Senate to approve the RCEP.

“Honorable members of the Senate, we appeal to you to vote to approve the RCEP agreement when you return to session this week,” said the JFC, a coalition of the American, Australian-New Zealand, Canadian, European, Japanese, Korean chambers and the Philippine Association of Multinational Companies Regional Headquarters Inc.

The Congress, which resumed session yesterday, is set to adjourn sine die on June 3.

In approving the RCEP, the JFC said the country would be able to build on the 18th Congress’ passage of new laws including the Tax Reform for Acceleration and Inclusion Act, Corporate Recovery and Tax Incentives for Enterprises Act, Electric Vehicles Industry Development Act, as well as amendments to the Public Service Act, Retail Trade Liberalization Act, and Foreign Investments Act, which are seen to provide benefits to the economy.

Apart from the Philippines’ large workforce and advantageous geographical location, another reason its members choose to invest in the country is the expanding access they can enjoy under trade agreements the country has with neighbors in the Association of Southeast Asian Nations (ASEAN) and other trade partners.

“We have encouraged the Philippines to apply to the CPTPP (Comprehensive and Progressive Agreement for TransPacific Partnership) and today we are asking the Philippine Senate to ratify the RCEP so that the large network of foreign markets already accessible to exports from the Philippines will be further expanded,” JFC said.

President Duterte ratified the RCEP in September last year, but the Senate’s concurrence is still needed before the country could deposit its instrument of ratification to the ASEAN Secretary General.

RCEP will enter into force for the country 60 days after its instrument of ratification is deposited.

When the Philippines completes the RCEP’s ratification process, the country will attract new investor.

For JFC, the RCEP would also provide other new advantages for exporters located in the Philippines that will benefit its member companies.

The agreement is already in force in countries like Australia, Brunei, Cambodia, China, Japan, Korea, Laos, New Zealand, Singapore, Thailand, and Vietnam.

Studies have shown the Philippine economy will expand at a slower pace if the country doesn’t take part in the RCEP.