RCEP is vital in race for market access–Neda, FEF | Cai U. Ordinario

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The National Economic and Development Authority (Neda) and local economists from the Foundation for Economic Freedom (FEF) expressed their staunch support for the ratification of the Regional Comprehensive Economic Partnership Agreement (RCEP).

THE National Economic and Development Authority and local economists from the Foundation for Economic Freedom expressed their staunch support for the ratification of the Regional Comprehensive Economic Partnership Agreement .

“We, in Neda, consider RCEP to be a vehicle that would drive our economy’s sustained growth through regional and global trade as well as through greater investment in strategic sectors. Being part of RCEP will further enhance our market access, placing us at par with other RCEP-participating countries and the world’s largest economies such as China, Japan, and Korea, among others,” Neda Secretary Arsenio M. Balisacan said.

This is equivalent to only 1.9 percent of the total 1,718 agricultural lines and only 0.8 percent of the total agricultural imports. Of these 33 tariff lines, 17 are raw materials, 8 are intermediate products, while only 8 are final goods. The Philippines currently exports a number of products for which concessions were secured and securing better market access for these products through RCEP opens the possibility to further widen the market base in these countries.Meanwhile, FEF reiterated that the RCEP can contribute 1.93 percent to real GDP and reduce poverty by 3.62 percent in 2030. It will also improve the country’s trade balance by $128.2 million.

The economists also said the main opposition to the RCEP’s ratification are “misplaced fears” that the agriculture sector would become less competitive than today. Other benefits from the RCEP, the local economists said, is access to a market of 2.3 billion people. This market already represents one-third of the world’s population.

 

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