The Regional Comprehensive Economic Partnership (RCEP), the largest free trade agreement, officially commenced today, marking a significant milestone for the Philippines.
Trade Secretary Fred Pascual hailed RCEP as a crucial part of President Bongbong Marcos administration’s ambitious plan to revitalize the economy and stimulate growth.
While RCEP provides access to new markets for Philippine exports, it also exposes the country to increased imports. The Philippines, ranked as the eighth least competitive nation out of 63 countries by the International Institute for Management Development in 2022, faces the challenge of enhancing its competitiveness in the global trade landscape.
Pascual emphasized that RCEP, being a mega free trade deal, not only facilitates market access but also attracts more investments to the Philippines.
Undersecretary of Trade and Managing Head of the Board of Investments, Ceferino Rodolfo, highlighted the benefits for various sectors, including agricultural producers of pineapple, coffee, and cacao.
The garments sector, heavily reliant on textile imports from China and Vietnam, can now expand exports to South Korea and Japan, enjoying zero duty privileges.
Rodolfo stressed that RCEP is not solely about market access but also about integrating into the global value chain. He cited the partnership between Zero Motorcycles from the United States and the Ayala family’s Integrated Micro-Electronics Inc., which stands to gain by exporting electric motorcycles to China, Japan, Korea, and Australia at reduced tariffs.