The Senate on Tuesday, February 21 has concurred in the ratification of the Regional Comprehensive Economic Partnership (RCEP).
Twenty (20) senators voted in favor of the ratification; one (1) voted against the measure and another one (1) abstained from the voting on Senate Resolution No. 485
Sen. Imee Marcos, sister of President Ferdinand “Bongbong” Marcos Jr., signified her decision not to participate in the voting, saying she is not shying away from her mandate but remains firm in her belief the RCEP would not be beneficial to the country’s agricultural sector particularly local farmers.
Sen. Risa Hontiveros voted “no” on the measure, saying she is not convinced that the health and security exception under the RCEP sufficiently protects the country’s citizens from the onslaught of tobacco and formula milk advertisements.
“Even if we have a law that prohibits tobacco advertisements, what if we are challenged for non-compliance with RCEP? I note that various EU countries in their liberalization of advertising services in the WTO also explicitly excluded tobacco advertising, even though they could have used the health and security exemptions cited by our resource persons,” Hontiveros pointed out.
“We did not do this, and I worry that the consequences may be grave and inter-generational,” she said.
Hontiveros, likewise, said she believes RCEP would not be good for the Philippines, saying she is persuaded by the study of Rashmi Banga, Senior Economist in the United Nations Conference on Trade and Development (UNCTAD), which found that the Philippines goods trade balance would worsen by US$ 264 million/year and it would lose tariff revenues of US$ 58 million/year.
Like Marcos, Hontiveros said she sides with the farmers, fishermen, trade union, health advocates, fair trade advocates in the Philippines, who represent the millions of Filipinos who say that the country is not ready for this trade deal.
“The calculations for me are simple, Mr. President. Dapa na po ang ating agrikultura. Hindi pa tayo nakakaahon sa pandemya (Our agriculture is stagnant. We are not yet out of the pandemic. This is not the time for RCEP,” she said.
Senators Pia Cayetano and Sen. Francis “Chiz” Escudero were not present during the voting. Escudero, however, interpellated on the measure.
Senate President Juan Miguel "Migz" Zubiri and Senate President Pro Tempore Loren Legarda, sponsor and co-sponsor of Senate Resolution No. 485 assured that the government will undertake mechanisms to make sure RCEP will not harm the Philippine agricultural sector.
Zubiri has repeatedly cited it is crucial for the Philippine government to join the trade agreement as neighboring countries would take over more markets the longer the country would delay the ratification of RCEP.
Zubiri is also confident the Philippines would have an opportunity to create 1.4 million jobs by 2031 once the RCEP is ratified.
Legarda, answering the interpellation of Sen. Alan Peter Cayetano, assured that an oversight committee will be created to address the issues raised by micro, small and medium enterprises (MSMEs), science and technology, agriculture, trade and industry and other sectors.
She also said resolutory clauses were included and made part of the concurring resolution to the RCEP agreement. One way of determining the losers and winners from RCEP, she said, would depend on the utilizaiton of the parties.
According to Legarda, sectors such as electronic equipment, metals, oil, gas, vegetables, fruits, nuts, mineral products, machinery, equipment, rice, transport, sugar, construction and fishing will gain from RCEP in terms of improvements in trade balance.
She further said that there shall be measures enclosed in the resolutory clauses that would include interventions to stimulate and support innovation.
“We cannot stand in isolation as we face this huge wave of global and regional economic integration. We need to build capacities and efficiencies to achieve competitiveness,” Legarda had said in a statement.
“My decision to lend support to the ratification of RCEP is premised on my conviction that an open, transparent, and predictable trade and investment environment generates new opportunities for everyone,” she stressed.
During the interpellation, Sen. Cynthia Villar, chairperson of the Senate Committee on Agriculture, proposed an amendment to Senate Resolution No. 485 that would ensure protection to the farmers and fishers who will be affected by the agreement, which the Senate accepted.
Villar specifically proposed the establishment of additional specific and focused interventions within the banner programs under RCEP to address the impact on local farmers and fishers who are producing the 15 products under the 33 tariff lines.
She said the interventions should take effect before the implementation of the country’s commitment to RCEP.