Philippines: RCEP ratification seen crucial to exports growth

Ratification of the Regional Comprehensive Economic Partnership (RCEP) is one of the factors recommended to ensure attainment of targets to be set under the “new and bolder” Philippine Export Development Plan (PEDP).

Sergio Ortiz-Luis, president of the Philippine Exporters Confederation Inc. (PhilExport) said as he reported that the “new and improved” PEDP for the period 2023-2028 is in its final stages of completion after the Executive Committee of the Export Development Council (EDC) recently discussed the draft plan in a recent meeting. There were no targets set yet but the meeting has identified some factors that could support exports growth over the next six years.

Ortiz-Luis, who is also EDC vice-chairman, said that part of key recommendations at the meeting was the ratification of RCEP. The RCEP is a free trade agreement among the 15 Asia-Pacific nations including the Philippines, creating the largest trading block representing nearly a third of the world’s gross domestic product.

“We’re optimistic about the new PEDP. It’s more than just renewing commitment to export development, it’s about being bold and aggressive, while recognizing persistent areas for improvements where we must have the determination to solve permanently,” said Ortiz-Luis.

The Senate failed to ratify RCEP in the previous Congress and due to strong opposition from various farmer groups that highlighted the adverse impact of the mega trade deal on local agriculture products and farmers.

Another recommendation at the EDC meeting includes the lifting of land ownership ceilings for commercial scale agribusiness, establishing a Bureau of Agri-Industrial Cooperatives Development in the Department of Agriculture, and amending the charters and regulatory frameworks of the Land Bank of the Philippines, Development Bank of the Philippines and the Small Business Corporation to allow them leeway to fulfill their mandates, are just some of the bold and innovative solutions proposed.

Equally, the plan also highlights private sector opportunities to hone Filipino creative capabilities and build global brands from the unique features and benefits of the Filipino products and services.

“This time, the PEDP will no longer just play the course, but will directly play the competitor. With new directions, capabilities, scale and strength.” Ortiz-Luis said.

Source: Manila Bulletin