THE Executive Department through the Department of Trade and Industry (DTI) responded anew to concerns raised by stakeholders in the agricultural sector against the Regional Comprehensive Economic Partnership (RCEP) Agreement.
Trade Secretary Ramon Lopez reiterated that the RCEP Agreement did not only exclude highly sensitive agricultural products from tariff liberalization. Perforce, RCEP even provides enough safety nets and flexibilities to address any threats to industries that may arise as a result of the implementation of the agreement.
He further stressed that nevertheless, these products while excluded from RCEP would still enjoy the other benefits that the agreement offers. In addition, appropriate trade remedies remain in place including WTO global safeguards and an RCEP Transitional Safeguard.
Should there be increased imports that threaten the local industry; the agreement provides that WTO safeguards can still be availed of. The agreement also provides a transitional safeguard to address the said scenario by allowing Parties to suspend further reduction of customs duties or increase customs duties following a surge in imports caused by a Party’s commitments under RCEP. Anti-Dumping and Countervailing Measures are also available which reaffirm Parties’ rights and obligations under relevant WTO agreements.
Asec. Gepty stressed that the RCEP Agreement has mechanisms providing for adjustments to commitments within the agreement, noting that the agreement tries to accommodate the circumstances of RCEP parties, which are at differing levels of development.
“Given this, our local industries including the agricultural sector should look at RCEP as a platform of more and bigger opportunities ranging from improved market access in the RCEP region, cheaper access to raw materials, wider cumulation area, trade facilitative measures, and even investments in smart agriculture and research and development”, Gepty said.
Trade Secretary Lopez emphasized that the Philippines cannot afford to have an inward-looking trade policy, citing the impact on investor confidence should the country not accedes to RCEP.
In various engagements, trade officials cited the study conducted by Dr. Caesar Cororaton, which provides an insightful analysis on the Philippines’ significant gains from the Agreement. From the study, it was noted that the RCEP is estimated to improve the country’s trade balance by as much as US$ 128.2 Million, increase overall welfare by US$ 541.2 Million, contribute to a 1.93% real GDP growth and lower poverty incidence by 3.62% in 2030./PN
