RCEP is vital in race for market access–Neda, FEF

By Cai U. Ordinario @caiordinario

THE National Economic and Development Authority (Neda) and local economists from the Foundation for Economic Freedom (FEF) expressed their staunch support for the ratification of the Regional Comprehensive Economic Partnership Agreement (RCEP).

T he Neda believes the RCEP could fast-track the country’s economic recovery from the pandemic and increase its access to non-traditional markets that would not only grow the country’s export revenues but also attract new investments.

F EF, for its part, believes delaying the ratification of the trade part will prevent the Philippines from maximizing opportunities to recover from the pandemic and generate more jobs. The FEF said out of the 15 signatory states, the Philippines is the only country that has yet to ratify RCEP. “ We, in Neda, consider RCEP to be a vehicle that would drive our economy’s sustained growth through regional and global trade as well as through greater investment in strategic sectors. Being part of RCEP will further enhance our market access, placing us at par with other RCEP-participating countries and the world’s largest economies such as China, Japan, and Korea, among others,” Neda Secretary Arsenio M. Balisacan said. “ Several consultations with concerned stakeholders and studies on the subject affirm that joining RCEP would unlikely lead to a surge in agricultural imports. In any case, with or without RCEP, the government strives for a competitive and resilient agriculture sector,” Balisacan said.

B ased on the 2021 trade data from the International Trade Center, Neda said under the RCEP, only 15 agricultural commodity groups corresponding to 33 tariff lines will have lower tariff rates compared to some ASEAN+1 FTAs.

T his is equivalent to only 1.9 percent of the total 1,718 agricultural lines and only 0.8 percent of the total agricultural imports. Of these 33 tariff lines, 17 are raw materials, 8 are intermediate products, while only 8 are final goods.

T he remaining agricultural tariff lines will have equal or higher rates compared to other ASEAN+1 FTAs, or are excluded from import tariff concessions under the RCEP.

“Joining RCEP will enhance our market access for key agri-based exports, as partner countries agreed to lower tariff rates on Philippine exports. Non-participation or delayed RCEP ratification may 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,” Balisacan said.

LABOR GROUP TO GOVT: DEFER TRAIN FARE HIKES

By Samuel P. Medenilla @sam_medenilla

T he Philippines currently exports a number of products for which concessions were secured (e.g., preserved pineapples, pineapple juice, chocolate) and securing better market access for these products through RCEP opens the possibility to further widen the market base in these countries.

GDP, poverty reduction

MEANWHILE , FEF reiterated that the RCEP can contribute 1.93 percent to real GDP and reduce poverty by 3.62 percent in 2030. It will also improve the country’s trade balance by $128.2 million.

We urge the government to build on the country’s momentum to increase trade and investment opportunities in support of our country’s post-pandemic recovery and development by ratifying the RCEP,” the FEF said.

Further delaying our participation in the free trade bloc means missing out on opportunities to increase trade and investments, which in turn can create opportunities that will benefit many Filipino businesses and generate jobs,” it added.

ALABOR group has called on the government to provide transportation subsidies for workers amid the proposed “ill-timed” train fare hikes.

I n a statement, the Federation of Free Workers (FFW) said an increase in the fares of the Metro Manila Transit Line 3 (MRT-3) and the Light Rail Transit (LRT) Lines 1 and 2 will impose an additional financial burden on workers.

We are calling on the government to prioritize the welfare of workers by providing them with non-wage benefits such as health and housing assistance, as well as transportation subsidies,” FFW National Vice President Jun Ramirez said.

H e said the government can get funding for the subsidies from rents and advertisements within MRT and LRT facilities.

T he labor leader issued the statement after the operators of LRT-1 proposed a fare increase of P17 to P44 from the current P11 to P30, while the LRT-2 management is considering adjusting their rates to P14 to P33 for store value tickets and P15 to P35 in single value tickets.

Meanwhile, MRT-3 is considering a fare hike of P4 to P6.

T he higher fares are meant to help the MRT and LRT management offset their loses during the pandemic.

F FW rejected the planned fare hike since it will further make it harder for workers to cope with the rising cost of living.

Workers have already sacrificed so much during this pandemic. They have lost jobs, taken pay cuts, and faced numerous challenges to their livelihoods. We urge government to find a way to support the transportation system without putting more financial burden on workers,” Ramirez said.