The Department of Energy (DOE) said the implementation of tariff commitments under the Regional Comprehensive Economic Partnership (RCEP) benefits the power sector.
DOE Secretary Raphael Lotilla said energy-related trade in services would further improve the business climate in the energy sector and will help the push for exploration, development and utilization of the country’s indigenous energy resources.
Lotilla also said RCEP will benefit the energy sector as it is capital-intensive where local capital may not be sufficient.
He added developed RCEP member countries have advanced technological capabilities that could enhance technology transfer to local counterpart companies, among others.
Lotilla said tariff elimination is important in ensuring an unhampered supply of commodities.
The DOE said even before the country acceded to RCEP, the Asean and Asean+1 free trade partners already enjoyed zero percent tariff rates on energy goods covered under Chapter 27 of the Tariff Book by the Tariff Commission, which is preserved in the RCEP agreement.
Zero tariff is now applicable to liquefied natural gas. Zero tariff on coal products was earlier extended to most-favored-nation countries in light of the Russia-Ukraine crisis, which affected the global economic situation and the steady supply of commodities in the world. – Jed Macapagal
