The Philippine Chamber of Commerce and Industry (PCCI) is calling for stronger government and stakeholder support as the Regional Comprehensive Economic Partnership (RCEP) Agreement came into force on June 2.
In a speech at the Department of Trade and Industry’s (DTI) International Trade Forum, PCCI president George Barcelon stressed on the importance of being able to utilize and maximize the trade pact to realize its promises, which include an added 0.2 percent in its member’s GDP.
“Further opening market access for export commodities and skilled professionals will have beneficial effect across the economic sectors — from the agri-industry to manufacturing to the services,” Barcelon said.
Barcelon said for benefits to materialize for agri-industry and manufacturing, “governments of the RCEP member-countries must be able to work on reducing non-tariff barriers, or at least agree on a uniform quality standard for food and other manufactured products across the region.”
“For the Philippines, laboratories to test quality standards should be put up in areas that are readily accessible and available to local producers,” Barcelon added.
Recognizing that the lowering of tariffs could disadvantage the agriculture sector and local food manufacturers, Barcelon further urged the national government, the Department of Agriculture (DA) and the Department of Trade and Industry (DTI) to include higher budget allocation for the production of high-value crops and the agri-food industry.
“DTI’s important role in promoting our country as an investment destination and export promotion must be supported with more budget and resource,” Barcelon also said.
While the RCEP commitments could open more opportunities for Filipinos to generate income, there is still much to be done to make full use of the trade agreement.
“In joining the RCEP, we have to work hard to maximize our gains from it. We have to improve our competitiveness by streamlining regulatory compliance and ensuring that government business services are in step with these streamlined procedures. Inputs to production such as transport, logistics and power must be lowered to a competitive level at par with (the Philippines’) Asean neighbors. Telecom and internet connectivity must be made available in all areas of the country,” Barcelon added.
RCEP member-countries account for 30 percent of global gross domestic product and one-third of total inward foreign direct investment. The trade pact, with its tariff reduction measures, simplification and harmonization of customs rules and procedures, as well as the preferential treatment on the practice of professions across the RCEP member-nations, has been much touted to sustain the country’s recovery and accelerate the its socio-economic growth.
