Senate President Pro Tempore Loren Legarda emphasized that the Regional Comprehensive Economic Partnership (RCEP) agreement could help advance the country’s agricultural sector, and the nation’s economy adapt to the fast-changing global trade.
Legarda said that an innovative approach that Senate President Juan Miguel Zubiri and she did was to create an oversight committee to strictly monitor the government agencies’ support programs for Micro, Small, Medium Enterprises (MSMEs), and the agriculture sector.
She stressed this after 20 of the 24 senators ratified the RCEP agreement Tuesday night.
During the interpellation period for Resolution 485 under Committee Report No. 29, Legarda pointed out that negotiations and consultations for the RCEP have been ongoing for 10 years under three administrations.
However, she believes the initiatives of past Department of Agriculture (DA) administrations needed more to boost the agricultural sector; thus, entering into RCEP would benefit the country as it could help promote economic growth and development.
“I’m taking that big leap of faith, so to speak, so that we can go along with the other ASEAN (Association of Southeast Asian Nations) nations, our neighbor Indonesia, as well as, Myanmar and Laos.
“We have to move forward, and we have to move forward along with our neighboring ASEAN nations lest we’ll be left by the wayside,” she pointed out.
Legarda assured that the recommendations submitted by the oppositors are part of the resolutory clauses of the Resolution and emphasized that there would be government support programs in favor of farmers and fisherfolks, as well as representation of indigenous peoples, women, and other marginalized sectors.
She noted that only 15 agricultural commodity groups corresponding to 33 tariff lines would have lower tariff rates than some ASEAN+1 FTAs under RCEP.
The National Economic and Development Authority (NEDA) said this is equivalent to only 1.9 percent of the 1,718 agricultural lines and 0.8 percent of the total agricultural imports.
Of these 33 tariff lines, 17 are raw materials, 8 are intermediate products, and only 8 are final goods. The remaining agricultural tariff lines will have equal, or higher rates than other ASEAN+1 FTAs, or are excluded from import tariff concessions under the RCEP.
“All the ASEAN nations have ratified RCEP, and it is to our disadvantage if we do not join RCEP because RCEP countries who are our trading partners outside of ASEAN will put down their tariffs for other ASEAN nations, who will be exporting the same produced to those countries like China, Japan, South Korea, Australia, and New Zealand, while products from the Philippines will enter those countries with high tariffs,” Legarda explained.
She also underscored the significant roles of implementing agencies and the executive department in the improvement of the country’s agriculture sector.
“We cannot say that there is no more hope. For me, hope springs eternal. That is why we solicited the inputs of our farmers and fisherfolk. If the Department of Agriculture does not do their job in terms of eliminating smuggling and in terms of giving help to farmers who cannot access the Rice Competitiveness Enhancement Fund, life will not be better for our farmers and fisherfolk,” she said.
National Economic Development Authority (NEDA) Secretary Arsenio Balisacan recently stated that non-participation or delayed RCEP ratification might result in foregone opportunities.
“We aim to promote greater openness, create a business-friendly environment, and provide a more stable and predictable system of trade,” he said.