Marcos ‘proud’ of RCEP ratification; agriculture groups hit treaty

MANILA, Philippines — Despite the outcry from farmers and fisherfolk, President Marcos lauded yesterday the Senate’s ratification of the Regional Comprehensive Economic Partnership (RCEP), saying the mega trade deal would provide economic opportunities for the Philippines.

“We are proud of the swift ratification of the Regional Comprehensive Economic Partnership Agreement, demonstrating our commitment to openness and a thriving business environment,” the President tweeted.

“Being part of this regional free trade agreement holds immense potential for promoting economic growth and development across the Asia-Pacific and brings numerous opportunities for our country, particularly in the areas of agriculture, manufacturing, and micro, small, and medium enterprises,” he said.

Agriculture and fisherfok groups, however, slammed Senate concurrence with the RCEP and urged Marcos, the concurrent agriculture secretary, to allay their fears by putting in place support programs as further liberalization of importation will threaten their long-neglected sector.

In a statement, the Federation of Free Farmers (FFF) yesterday called on the President to meet directly with farmers, fishers and other agriculture stakeholders to stem RCEP’s potential negative impacts and spell out his administration’s support for the sector.

The FFF expressed initial skepticism over the supposed “guidelines” that the Senate has issued to help the agriculture sector meet the challenges of RCEP.

It pointed out that many of the proposed interventions of the Department of Agriculture (DA) and other agencies were mere reiterations of long-standing programs that have had minimal impact on the competitiveness and profitability of farmers and fishers.

The FFF also noted that the guidelines should have instead focused on policy reforms, new strategies and changes in implementation and impact assessment mechanisms to improve the effectiveness of government interventions.

“We respect the Senate’s decision, and we hope and pray that things will work out well in the future. But if they do not, we will hold the senators accountable for their decision. They cannot just pass on the blame to the executive department, which they themselves acknowledged has had a long track record of broken pledges and poorly implemented programs,” said Raul Montemayor, FFF national manager.

The Senate approved late Tuesday the resolution concurring with the Philippines’ ratification of the RCEP in September 2021 with 20 affirmative votes, one negative vote and one abstention.

The RCEP is a free trade agreement between members of the Association of Southeast Asian Nations (ASEAN) and their FTA partners Australia, China, Japan, New Zealand and Korea, with a combined population of 2.3 billion or 30 percent of the world’s population with a total Gross Domestic Product of around $38,813 billion or 30 percent of the global GDP.

United Broiler Raisers Association president Elias Jose Inciong said the Senate did not interface enough with those opposing RCEP to fully understand their concerns.

“In fact, the senators did not seem to realize the contradictory nature of the resolution. The portion on the so-called guidelines would not be necessary if we had a successful economy under WTO Part I,” he said in a Viber message, referring to the World Trade Organization.

For its part, Samahang Industriya ng Agrikultura (SINAG) said several laws meant to protect the agriculture sector have failed to do so.

“No amount of sugar coating can hide the disastrous impact of RCEP to the country, especially to the agriculture sector. Putting a thousand guidelines to an oversight committee without an enabling law is meaningless. We have enough laws that should have protected the sectors, but they were never implemented,” SINAG executive director Jayson Cainglet said in a statement.

For the fisheries sector, militant group Pambansang Lakas ng Kilusang Mamamalakaya ng Pilipinas (Pamalakaya) said RCEP will further flood the market with cheap imports at the expense of local farmers and fisherfolk.

“Even though RCEP is not yet in place, the Philippines imported almost 200,000 metric tons of round scad and other pelagic fishes from China, Vietnam and Taiwan from 2018-2022,” Pamalakaya chairman and former legislator Fernando Hicap said.

“Now that the Philippines has formally joined the RCEP, large volumes of imported agricultural products are expected to flood our country. This will threaten our local industry that has been neglected of significant government support and which will be outcompeted by imports,” he said.

Meanwhile, DA Assistant Secretary for consumer affairs and spokesperson Kristine Evangelista said the department will continue to boost its support programs such as capacity building of farmers and fisherfolk.

“We will continue to strengthen our program when it comes to capacity building, not only to increase their production or yield, but also improve market linkage and value adding to make our local produce competitive because this is a way to help them also in preparation for any other players in retail selling,” she said in an interview with reporters.

Maximizing benefits

For senators, the Philippines can maximize the benefits from its participation in the free trade agreement if the government and various industries work closely together.

Senate President Juan Miguel Zubiri and Senate President Pro Tempore Loren Legarda sponsored the resolution. Voting “no” was Sen. Risa Hontiveros while Sen. Imee Marcos, elder sister of President Marcos, abstained.

Legarda said the FTA would “help advance the country’s agricultural sector and the nation’s economy adapt to the fast-changing global trade.”

“All the ASEAN nations have ratified RCEP, and it is to our disadvantage if we do not join RCEP because RCEP countries who are our trading partners outside of ASEAN will put down their tariffs for other ASEAN nations, who will be exporting the same produced to those countries like China, Japan, South Korea, Australia and New Zealand, while products from the Philippines will enter those countries with high tariffs,” Legarda said.

Legarda said sensitive agricultural products would be excluded from the country’s tariff commitments in the RCEP.

The commitments cover only 1.9 percent of the total agricultural tariff lines in the RCEP, and apply to 15 agricultural products that will not pose a threat to the local agriculture sector.

Sensitive commodities such as swine meat, poultry meat, onion, rice and sugar are excluded.

On the other hand, the RCEP would offer better market access for key Philippine products and services in FTA partners.

She, however, said DA initiatives need to be fully implemented as soon as possible so the country’s entry to RCEP would help promote economic growth and development.

She said recommendations submitted by the groups opposing the RCEP are part of the resolutory clauses of the resolution and emphasized that there will be government support programs in favor of farmers and fisherfolk, as well as representation of indigenous peoples, women and other marginalized sectors.

“It would be wrong to simply argue that we must join it because others did. Rather, we should join out of the belief that it will create a snowball effect on jobs for our people and market for our produce,” Zubiri said prior to the voting.

He said the Philippines, under the RCEP, would be able to source raw materials and intermediate goods from fellow RCEP countries, process products locally and then export the products out to the same countries at a preferential agreement.

The measure also creates a special oversight committee on the agreement, which will look into the government’s plans and strategies to harness competitiveness in various sectors.

Upon the amendment of Senate Minority Leader Aquilino Pimentel III, the resolution allows the chamber to recommend to the President the country’s withdrawal from the RCEP if it causes adverse economic effects.

Hontiveros added an amendment that enjoins the government to exhaust to the fullest all exemptions and extensions granted under RCEP. – Ramon Efren Lazaro, Elizabeth Marcelo, Paolo Romero