Senatorial aspirant and Sorsogon Governor Francis “Chiz” Escudero on Sunday urged the Senate to carefully review the terms stipulated under the Regional Comprehensive Economic Partnership (RCEP) agreement before concurring in the ratification of the trade pact.
The RCEP, which covers the world’s largest free trade area, entered into force for other 11 other signatory countries on Jan. 1, 2022 particularly Brunei, Cambodia, Lao PDR, Singapore, Thailand, Vietnam, Australia, China, Japan, South Korea and New Zealand.
It was signed in November 2020 and ratified by President Duterte in September 2, 2021. But since it has yet to be approved by the Philippine Senate, the RCEP remains unimplementable in the country.
Escudero noted that many agricultural groups are opposed to the RCEP agreement, thus, the need for senators to thoroughly review the terms of the pact.
“If agricultural stakeholders are right, then we will be removing 75 percent of our tariff restrictions on agricultural products,” said Escudero, who is seeking a fresh Senate term in the upcoming May 2022 elections.
“What is the long-term impact of that on our farmers and fisherfolk? As it is, they are already the poorest sector in the Philippines,” the veteran lawmaker, said.
Even now, Escudero noted that the country is turning to imports to address the food shortage following the catastrophic impact of Typhoon Odette.
For one, he cited the Department of Agriculture’s (DA) announcement that it will be importing 60,000 metric tons of “galunggong,” mackerel and other small pelagic fishes to address a projected a fish supply shortfall of 119,000 MT in the first quarter.
“Isn’t it tragic that the Philippines, the world’s second largest archipelago, is importing fish to ensure food security? How have we come to this? How has the agriculture sector become incapable of producing sufficiently for the country?” he pointed out.
“This, to me, is a sign that somewhere, somehow we have done wrong our farmers and fishers, and we owe it to them to carefully study more trade agreements that could leave them even more vulnerable to imports,” Escudero stressed.
The former senator said that while nobody wants to be left behind in a global economy, it is imperative for the government to ensure it would not “leave behind the most vulnerable sectors of our local economy” when entering into more trade deals.
“Growth must always be inclusive, or it will only perpetuate the cycle of poverty,” Escudero said, as he noted that only big exports and traders are prodding the Senate to approve the trade pact immediately but those in the agriculture sector are opposed to it.
“I think senators should give time to scrutinize the RCEP. There’s no need to rush—we just need to be certain,” Escudero said.
Citing Philippine Statistics Authority (PSA) data from 2018, the governor said poverty incidence was highest among farmers (31.6 percent), fisherfolk (26.2 percent) and individuals living in rural areas (24.5 percent).
In 2015, he said the same sectors were also the poorest, with poverty incidences at 40.8 percent among farmers, 36.9 percent among fisherfolk, and 34 percent among rural-based individuals.
He also noted that like the RCEP, the Philippines’ accession into the World Trade Organization (WTO) in 1994 promised cheaper manufacturing costs, more jobs, greater access to free trade markets, and increased competitiveness for Philippine industries, but nothing materialized.
He pointed out the agriculture sector’s share in the GDP has dropped from 20 percent in 1997 to 10 percent in 2020. In 2021, the agriculture sector’s output contracted by 3.3 percent in the first quarter, 1.5 percent in the second quarter and 2.6 percent in the third quarter, according to the PSA.
“As we move to secure our participation in global trade, we must make sure that we are not crippling ourselves and our ability to produce our own food, support our own sectors and improve the lives of our people,” he said.
“This is something the Senate must consider as it looks into the terms of the RCEP,” Escudero added.