Economic managers welcomed the ratification of the Regional Comprehensive Economic Partnership (RCEP), saying the mega-trade deal would strengthen the Philippines’ position as an ideal investment hub in the region.
Finance Secretary Benjamin E. Diokno, National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan and Budget Secretary Amenah F. Pangandaman said RCEP will expand the country’s market access, attract more investments, and create jobs.
Tuesday night, 22 senators voted for the concurrence and formal approval of the RCEP agreement, with one dissenting vote and one abstention.
RCEP is the largest regional free trade agreement (FTA) in the world, accounting for 30 percent of the world’s population, 29 percent of gross domestic product, 29 percent of trade, and 33 percent of global inward investments in 2020.
Diokno said FTAs such as the RCEP support the growth and development of businesses, which make these frameworks strong drivers for post-pandemic economic recovery efforts.
The RCEP was signed on Nov. 15, 2020 by 10 ASEAN member states (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam), the ASEAN+3 countries (China, Japan, and South Korea), and ASEAN+6 members (Australia and New Zealand).
Since its date of effectivity on Jan. 1, 2022, all RCEP participating countries have ratified the agreement, except for the Philippines.
“The ratification of the RCEP is key to a more open, transparent, and predictable trade and investment environment,” Diokno said in a statement on Wednesday, Feb. 22.
“Deeper economic integration among the RCEP member states will expand the country’s market access for goods and services, attract more investments, and create more and better jobs,” he added.
Balisacan, meanwhile, expressed his optimism that the country will reap the benefits and advantages of the RCEP, as it consolidates existing ASEAN regional free trade agreements among members, as well as dispute settlement, among others.
“With the country’s participation to RCEP, the Philippines has now further strengthened its position as an ideal investment hub in the region as we expand market access, facilitate trade, and align our rules and procedures with participating economies,” Balisacan said.
RCEP also complements the recent implementation of key economic liberalization laws such as the amendments to the Retail Trade Liberalization Act, Foreign Investments Act, Public Service Act, and the Build-Operate-Transfer Law, the NEDA chief added.
For her part, Pangandaman lauded the Senate leadership for the “prompt and decisive action” in ratifying the RCEP deal.
“We especially thank Senate President Juan Miguel ‘Migz’ Zubiri and Senate President Pro Tempore Lorna Regina ‘Loren’ Legarda for sponsoring the RCEP ratification and for defending this much-needed agreement for the economy,” Pangandaman said.
“We also thank the House of Representatives under the leadership of Speaker Ferdinand Martin Romualdez for expressing their support for the RCEP Ratification through House Resolution No. 728,” she added.
Pangandaman earlier submitted the position of the budget department to the Senate expressing its support for the concurrence on the ratification of RCEP agreement.
“The RCEP Agreement is an instrument that will further our economic trade with participating Asia – Pacific nations,” Pangandaman said.
“We have to capitalize on the benefits of the Agreement, as it will help provide the Filipino people with more avenues for better economic opportunities and outcomes. All in pursuit of our Agenda for Prosperity,” she concluded.