DTI urges Senate to approve RCEP
The Department of Trade and Industry (DTI) is urging for an immediate Senate concurrence of the Regional Comprehensive Economic Partnership (RCEP) agreement.
In a statement, DTI Secretary Ramon Lopez said that there is an “imperative need” to approve the RCEP as delayed participation could disrupt the country’s economic growth and negatively impact future investments.
The trade chief added that bailing out of the RCEP could signify that the country does not approve of an open partnership with investors, creating a business-friendly environment, encouraging closer integration of economies, and providing a stable trade system.
RCEP is a mega trade deal among the Asia-Pacific nations and is set to take effect on January 1, 2022.
Currently, there are six ASEAN members and five non-ASEAN trade partners that have already given their instruments of ratification.
Philippine Institute for Development Studies Research Fellow Francis Mark Quimba said that studies have shown that the Philippines, together with Vietnam, stand to gain the most in terms of economic growth under the RCEP due to lower trade costs and higher factory gate prices.
In 2020, the countries included in the RCEP represented 51% of Philippine exports, 68% of the country’s imports, and 58% of investments.
