The Department of Trade and Industry (DTI) is hopeful of the ratification this year of the Regional Comprehensive Economic Partnership (RCEP) Agreement and its eventual implementation to reap its benefits as soon as possible.
DTI Secretary Ramon Lopez said in a statement the trade agreement will not only facilitate the recovery efforts of the country but will also pave the way for the internationalization and deeper participation of micro, small, and medium enterprises (MSMEs) in the global value chains. (GVCs).
“One big advantage of the RCEP Agreement is the wider cumulation area for raw materials.
This means our MSMEs can source inputs from the 15 RCEP Parties, process the products here in the country, and export the same to the region at a preferential arrangement. So, a Philippine manufacturer can source raw materials from China, and export the finished product to Japan, South Korea, Australia or New Zealand,” Lopez said.
He said having one set of simplified rules in trade will also facilitate trade transactions and will reduce administrative cost for exporters. In the process, this will encourage more production and manufacturing activities in the country. This means more jobs and business opportunities for the Filipinos.
“The RCEP region accounts to around 50 percent of Philippine exports and 68 percent of Philippine import sources. Hence, the country cannot afford not to be part of this free trade area,” Lopez added.
