PH misses RCEP effectivity
The Philippines failed to submit its Instrument of Ratification, a documentary declaration of compliance, for the Regional Comprehensive Economic Partnership (RCEP) before the treaty has taken effect last January 1 as the Senate went into recess without concurring the mega trade deal.
Accounting for 29% of the global Gross Domestic Product (GDP), the trade partnership between member states of the Association of Southeast Asian Nations (ASEAN) is expected to provide broad economic and societal benefits for participating countries.
With 15 member nations and 2.2 billion people, the trade partnership offers broad economic and societal benefits that go beyond imports and exports. A study noted that the world’s income from the trade deal could increase to $186 billion by 2030.
Despite missing the free-trade agreement’s kick-off date, the Department of Trade and Industry (DTI) Assistant Secretary Allan B. Gepty said that the Senate plans to continue conducting public hearings so that the country could “immediately deposit the Instrument of Ratification.”
Gepty noted that participation is important as the Philippines could stand to miss a lot of opportunities by dismissing the RCEP.
Virginia Polytechnic Institute and State University (USA) Research Fellow Dr. Caesar Cororaton said that the RCEP could improve the country’s trade balance by $128.2 million, increase overall welfare by $541.2 Million, contribute to a 1.93% real GDP growth, and lower poverty incidence by 3.62% in 2031.
Currently, RCEP is already in motion in six ASEAN countries — namely, Brunei Darussalam, Cambodia, Lao PDR, Singapore, Thailand, and Vietnam — and its trading partners Australia, China, Japan, Korea, and New Zealand.
