Government ensuring Philippines readiness amid delay in RCEP ratification

MANILA, Philippines — The government is making sure the country is ready to join the Regional Comprehensive Economic Partnership (RCEP) trade pact amid delays in its ratification, the Department of Finance said.

DOF assistant chief economic counselor Marites Oliva said the government and lawmakers in the Senate recognize the benefits of RECP.

“But there is this fear that the country, particularly the agriculture sector, is not ready with RCEP,” Oliva said.

“That is why there is a technical working group formulating specific actions to ensure that the agriculture sector will be more ready with the possible influx of more resources and that it will be competitive and produce products at par with the rest of the world,” she 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.

However, the participation of the Philippines in the RCEP has been delayed amid calls from agriculture groups to reject the trade deal.

“I think the government is currently just ensuring that we are ready. But we are open and we recognize its importance,” Oliva said.

She maintained that RCEP could provide a number of benefits as it could help improve increased access to finance and competitiveness as it involves higher foreign equity participation that could boost capitalization.

“FDI (foreign direct investment) could provide technology, management skills and also help improve our domestic financial infrastructure,” Oliva said.

RCEP 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.

Lawmakers in the upper chamber is looking at ratifying RCEP before Congress goes on its Holy Week break.