Government committed to RCEP ratification

MANILA, Philippines — The Marcos administration is committed to push for the ratification of the regional comprehensive economic partnership (RCEP), according to the chief of the Department of Trade and Industry (DTI). In a radio interview with Radyo Pilipinas yesterday, Trade Secretary Alfredo Pascual said President Marcos is committed to ratify the trade agreement.

“President Marcos is committed to ratify it (RCEP),” Pascual said in Filipino.

Pascual emphasized the need to ratify the RCEP, citing that foreign investors, as well as economic ministers, are always asking how soon the country will ratify the trade agreement.

“When I attended a meeting with economic ministers in September, this was always the question asked to the Philippines – when will the country ratify it,” Pascual said in Filipino.

He explained that the country’s membership to the RCEP is also a question constantly asked by potential investors looking at the Philippines.

“Because when they put up factories here and they produce products for export markets, they want to export these products to countries that are members of RCEP,” Pascual said in Filipino.

“If the Philippines is not a member of RCEP, it will not receive the reduction in tariff to sell to other countries and become competitive in the export markets,”he said.

The RCEP is a multilateral trade agreement between and among ASEAN countries, including the Philippines, and China, Japan, South Korea, Australia and New Zealand. It provides for an open, inclusive and rules-based trading system to promote deeper economic integration in the region.

The trade deal is expected to boost Philippine exports through enhanced market access in the region. It would provide cheaper goods for production and manufacturing, as well as ensure transparent rules and clear mechanisms for resolving trade issues and concerns, and also allow micro, small and medium enterprises to participate in the global value chain.

The proposed Senate resolution to confirm RCEP was not voted upon during the last session day of the 18th Congress, indicating that the RCEP was not ratified.

Pascual  emphasized the importance of RCEP to investors in the country.

“They want to be able to export to grow their market and be competitive in other countries,”Pascual said.

While he acknowledged concerns of the agriculture sector regarding the RCEP, Pascual said  tariffs on critical items in agriculture would not be touched.

Over 101 agriculture groups earlier said the country’s agriculture sector is not ready for the RCEP as it has been and continues to be, ill-prepared for free trade in the global market.

The group cited high production costs, as well as inadequate basic support services and infrastructure as among the factors making it ill-prepared.

Meanwhile, in a statement yesterday, the DTI said  Pascual is seeking more investments in food production and agriculture from China during the recent China International Import Expo (CIIE) in Shanghai, China.

“Our participation in the CIIE has become not only a practical response to an opportunity, but also an imperative to expand our international market, and solidify the Philippines’ reputation as a reliable sourcing destination for food,”Pascual said.

The Philippines’ participation in the CIIE is facilitated by the Department of Trade and Industry’s Center for International Trade Expositions and Missions (CITEM) and the Philippine Trade and Investment Center (PTIC) in Shanghai.

CIIE is the first import-themed, national level expo in China that features international exhibitors across various sectors.

Highlighting DTI’s science, technology, and innovation (STI) driven industrialization strategy, Pascual invited companies, potential partners, and stakeholders to invest in the Philippines, particularly in food production and agricultural investments.

“We also invite partners to help complete, complement, and upgrade our food production value chain through the utilization of science, technology, innovation, and essential digital technologies that will enable our industries to be in a relatively improved position that will pave the way for industrial transformation,”Pascual said.