Is RCEP the answer?
On Tuesday night, twenty senators voted for the ratification of the Regional Comprehensive Economic Partnership (RCEP) agreement.
The RCEP is a free trade agreement (FTA) between the ten member states of the Association of Southeast Asian Nations (ASEAN) (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam) and its five FTA partners (Australia, China, Japan, New Zealand and the Republic of Korea). (asean.org)
The trade agreement aims to: (a) broaden and deepen economic integration in the region, strengthen economic growth and equitable economic development, and advance economic cooperation; (b) strengthen their economic partnership to create new employment opportunities, raise living standards, and improve the general welfare of the people; (c) establish clear and mutually advantageous rules to facilitate trade and investment, including participation in regional and global supply chains. (asean.org)
While the RCEP has the biggest business groups and the government economic team backing it, the opponents of the agreement anchor their opposition on the fear that the country will be flooded with imported agricultural commodities that will kill domestic producers. Interestingly, the presidential sister, Senator Imee Marcos, is one of the strong opponents of the agreement.
The economic managers explained that lifting tariffs due to the RCEP do not cover basic agricultural products such as rice, sugar, and onions. The economic team admits that with or without RCEP, Philippine agriculture has long needed reforms to make it globally competitive.
Are we ready for a free competition?
Doubting Thomases say NO. But the economic team and the big business groups want the country to take a leap of faith despite domestic production problems and inefficiencies.
With the Senate’s ratification, the RCEP is a reality the country faces. While competition theoretically benefits the consumers, the government must do its share by providing assistance and protection to the vulnerable and most affected sectors.
In Darwin’s theory of evolution, competition is viewed as a major part of the struggle for survival. We hope our leaders are leading us in the right direction.