Senatorial aspirant Gilbert "GIBO" Teodoro recognizes the benefits of free trade agreements (FTAs), but the government should boost its support to local farmers and businesses amid rising trade multilaralism.
Amid the ongoing debates in the Senate for the concurrence of the Regional Comprehensive Economic Partnership (RCEP), the former defense secretary under then President Gloria Arroyo believes that the country should not miss the opportunity of joining the world’s largest free trade deal.
“Free trade agreements like the RCEP provides a larger playing field full of new opportunities for our Filipino enterprises including those in the agriculture sector. As FTAs cut tariffs and duties, this enables Filipino products to become competitive in other markets,” Teodoro said.
Teodoro, a former Tarlac congressman, added that the Philippines is a rich market of over 110 million consumers, but the world is a bigger market which Filipino entrepreneurs should also consider tapping its vast opportunities through free trade and preferential tariff arrangements.For instance, China, an RCEP participating country, is a 1.4 billion market with a growing middle-income population offers a huge potential for Philippine exports.
But, he equally stressed that this would be possible if programs “to boost competitiveness, capacity building, and productivity of our local industries will be institutionalized.”
Among the policies pushed by the senatorial candidate include support on smart agriculture and research and development to help farmers increase the quantity and improve the quality of their products by utilizing modern technology and prioritizing farm-to-market roads to cut logistics costs in transporting farm produce to markets. These programs will help prices of local agricultural products to become more competitive with imported commodities.
To stimulate demand for domestic products, Teodoro wants to boost promotion of Philippine-made products through “buy local” campaign and to incentivize companies sourcing their raw materials from local industries. The government, being the biggest market for Filipino products should also step up its efforts in patronizing local products.
Lastly, he said the government should work closely with businesses, especially micro, small, and medium enterprises (MSMEs) to help them integrate with the global value chain and assist in utilizing these FTAs like RCEP.
“The solution is through consultation and close coordination,” Teodoro said.
The Senate has a hard time concurring the executive ratification of RCEP amid strong opposition from agriculture groups, domestic producers, and non-government organizations.
If the Senate fails to concur Malacanang’s ratification before it adjourns session on Saturday, Feb. 5, the treaty will have to wait for the next administration before it could be resubmitted to the new Senate for concurrence.