DTI sees revival of garment industry under RCEP

The Department of Trade and Industry (DTI) expressed optimism for the revival of the garment industry as it prepares to mount massive public awareness campaign, particularly the businesses in the country on the economic benefits that can be gained from the implementation of the Regional Comprehensive Economic Partnership (RCEP), particularly on various agricultural tariff concessions from member countries. DTI Secretary Alfredo E. Pascual said the approved Executive Order which operationalizes the country’s preferential tariff commitments under RCEP, which will take effect  June 2 this year. Aside from the preferential tariff concessions, Pascual raised hopes that local industries, such as garments, can be revived because the Philippines can now import textile at preferential rates from RCEP countries and the determination of the rules of origin will no longer be limited to contents coming from the Philippines but from all RCEP countries. “We will have to make the public particularly the businesses in our country aware of the benefits that they can gain from RCEP as well as the other existing preferential trade agreements,” he said at the Malacanang public briefing. Meantime, Pascual said that DTI will start with a major event, which is the launching of the Export Development Plan 2023-2028 on June 9 with President Marcos as keynote speaker to drum up interest and boost the country's exports in RCEP. DTI will also hold an international trade forum on RCEP and other FTA deals of the country. “We will also show what we're wanting to do our strategy for the next five to six years to increase the exports from our country imports that's tied up also with the investments that we're trying to bring in particularly the export-oriented investments,” he said. Pascual also hinted of possible assistance that DTI might give them further help during the implementation of the RCEP provisions that will be favorably affect their industry. Some of the concessions under RCEP for the Philippines include lower tariffs from four countries. For instance, the Philippines got lower tariffs from China for preserved pineapples, pineapple juice, coconut juice, adhesive tape, printed paper, light signal, sound signaling, ignition wiring, and graphic plate. From Japan, tariff concessions are granted for fish fillet, pineapple, coke, coffee, sunflower seed, canned salmon, chocolate, fruit cocktail, fruit juices, and leather gloves  and footwear. From Korea, the Philippines will enjoy preferential tariffs for dried and salted tilapia, cheddar cheese, papaya, preserved pineapple, durian, soya bean, canned tuna, alcoholic beverages, cement, fertilizers, polymer resins, plywood, women's jacket, men's shirt, bicycle, among others. Overall, the EO maintains the current preferential tariffs on about 98.1 percent of the 1,718 agricultural tariff lines, and 82.7 percent of the 8,102 industrial tariff lines. Out of the 1,685 agricultural tariff lines, the EO retained 1,426 lines at zero while 154 30 flights will remain in their respective most favored nation (MFN) rates are most favored nation rate and excluded from any tariff concession. Meanwhile, agricultural tariffs on 100 tariff lines, which are in the sensitive and highly sensitive list, shall generally be lowered, and MFN rates in the 20th year of RCEP, but still higher or at par with the ASEAN+1 rates. This means, there is really not going below the ASEAN+1 rates to which the Philippines is already committed. For the remaining 33 lines, these are the important 33 lines the EO will reduce tariff rates upon entry into force, or implement gradual reduction over a period of 15 to 20 years. But these tariff lines will involve cultural products, which are not really being produced very much in the Philippines.