NATIONAL
Advocates Philippines
RCEP Approval Applauded by DOF and NEDA
Photo credit: DOF
The Department of Finance (DOF) has welcomed the Senate's approval of the Regional Comprehensive Economic Partnership (RCEP) agreement on February 21, 2023.
The RCEP is the largest regional free trade agreement in the world, accounting for 30 percent of the world's population, 29 percent of GDP, 29 percent of trade, and 33 percent of global inward investments in 2020.
The ratification of the RCEP is expected to create a more open, transparent, and predictable trade and investment environment in the Philippines. It will expand the country's market access for goods and services, attract more investments, and create more and better jobs, according to Finance Secretary Benjamin Diokno.
The RCEP was signed on November 15, 2020, by ten ASEAN member states, the ASEAN+3 countries, and ASEAN+6 members. Since its date of effectivity on January 1, 2022, all RCEP participating countries have ratified the agreement, except for the Philippines.
The DOF has been advocating the benefits of the RCEP, which takes into account emerging trade issues affecting small and medium enterprises, e-commerce, competition, intellectual property, and government procurement that were not covered in existing FTAs.
They believe that the RCEP provides enhanced trade facilitation provisions that make cross-border trade simpler and more efficient. They said it will result in a stable and predictable business environment to attract more investments in the Philippines and safeguard the country's investments abroad. The agreement will also support MSME development and drive participation in the global value chain.
“Moreover, the Philippines will benefit from economic and technical cooperation in order to strengthen its competitiveness. Skilled Filipino professionals and business persons in legal, construction, engineering, and banking services will be given preferential treatment to practice their professions in participating nations. Philippine intellectual property rights will also be upheld and given stronger protection to ensure the interests of Filipinos,” it said.
With the approval of the RCEP by the Senate, the Philippines is set to join other RCEP participating countries in enjoying the benefits of this historic agreement. The DOF expects the RCEP to support the growth and development of businesses and serve as a strong driver for post-pandemic economic recovery efforts.
Meanwhile, the National Economic and Development Authority (NEDA) said RCEP will further strengthen the country's position as an ideal investment hub in the ASEAN region.
“The RCEP Agreement consolidates existing ASEAN regional free trade agreements among members and covers trade in goods, services, investments, economic and technical cooperation, as well as dispute settlement, among others, it said.
NEDA Secretary Arsenio M. Balisacan said that the agreement will expand market access, facilitate trade and align the country's rules and procedures with participating economies, leading to more, higher quality, and more resilient jobs that will be key to rapid and sustained poverty reduction.
“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 will also facilitate a more open and business-friendly investment climate in the country,” he added.
The RCEP is the largest regional free trade agreement in the world, accounting for 30 percent of the world's population, 29 percent of GDP, 29 percent of trade, and 33 percent of global inward investments in 2020.
The ratification of the RCEP is expected to create a more open, transparent, and predictable trade and investment environment in the Philippines. It will expand the country's market access for goods and services, attract more investments, and create more and better jobs, according to Finance Secretary Benjamin Diokno.
The RCEP was signed on November 15, 2020, by ten ASEAN member states, the ASEAN+3 countries, and ASEAN+6 members. Since its date of effectivity on January 1, 2022, all RCEP participating countries have ratified the agreement, except for the Philippines.
The DOF has been advocating the benefits of the RCEP, which takes into account emerging trade issues affecting small and medium enterprises, e-commerce, competition, intellectual property, and government procurement that were not covered in existing FTAs.
They believe that the RCEP provides enhanced trade facilitation provisions that make cross-border trade simpler and more efficient. They said it will result in a stable and predictable business environment to attract more investments in the Philippines and safeguard the country's investments abroad. The agreement will also support MSME development and drive participation in the global value chain.
“Moreover, the Philippines will benefit from economic and technical cooperation in order to strengthen its competitiveness. Skilled Filipino professionals and business persons in legal, construction, engineering, and banking services will be given preferential treatment to practice their professions in participating nations. Philippine intellectual property rights will also be upheld and given stronger protection to ensure the interests of Filipinos,” it said.
With the approval of the RCEP by the Senate, the Philippines is set to join other RCEP participating countries in enjoying the benefits of this historic agreement. The DOF expects the RCEP to support the growth and development of businesses and serve as a strong driver for post-pandemic economic recovery efforts.
Meanwhile, the National Economic and Development Authority (NEDA) said RCEP will further strengthen the country's position as an ideal investment hub in the ASEAN region.
“The RCEP Agreement consolidates existing ASEAN regional free trade agreements among members and covers trade in goods, services, investments, economic and technical cooperation, as well as dispute settlement, among others, it said.
NEDA Secretary Arsenio M. Balisacan said that the agreement will expand market access, facilitate trade and align the country's rules and procedures with participating economies, leading to more, higher quality, and more resilient jobs that will be key to rapid and sustained poverty reduction.
“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 will also facilitate a more open and business-friendly investment climate in the country,” he added.
Feb 22, 2023
