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Manila’s top Regional Comprehensive Economic Partnership negotiator says the Philippines may deposit on or before April 3 the instrument of ratification of the regional economic agreement to the ASEAN secretary-general
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The Philippines will start benefitting from preferential tariffs and trade treatment from other RCEP members 60 days after depositing the ratification instrument
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The government should be ready within those 60 days with an executive order from the President on the RCEP implementation, along with the Bureau of Customs’ schedule of preferential tariffs for the deal
The Regional Comprehensive Economic Partnership (RCEP) could enter into force in the Philippines in June. This, as Manila’s top negotiator for RCEP says his team is planning to deposit on or before April 3 the instrument of ratification to the secretary-general of the Association of Southeast Asian Nations.
Once the instrument of ratification has been deposited, the Philippines may start benefitting from the regional trade pact by June if all required submissions have been met by the country, Department of Trade and Industry Assistant Secretary Allan B. Gepty.
“We still have to deposit the instrument of ratification and from deposit, you’ll have to count 60 days and then RCEP will take effect in the Philippines,” Gepty, the country’s top negotiator for RCEP, told media on the sidelines of a committee meeting in Makati City on March 29.
“We are just in the middle of domestic preparations and then I think on or before April 3 [our plan is to] deposit [the] instrument of ratification,” he said partly in Filipino.
Among the 10 ASEAN members, only the Philippines and Myanmar have yet to submit their RCEP instrument of ratification.
Indonesia, the largest economy in ASEAN and the fifth largest among the RCEP signatories, had ratified the instrument by November 1, 2022. The deal came into effect on January 2 this year, allowing Indonesia private exporters and importers to avail themselves of preferential tariffs under RCEP.
Gepty stressed that the government should be done within the 60 days with the necessary issuances, such as an executive order on the country’s RCEP implementation with an attached and incorporated schedule of preferential tariffs that the Philippines is committed to offer.
Earlier in February, after 20 senators ratified the deal by vote, Gepty explained the next steps of the process in an online media briefing.
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“… Once it’s signed by the President, that will be the basis of the Bureau of Customs for issuing a memorandum circular implementing the RCEP agreement based on the schedule of commitments in that Executive Order,” Gepty said.
When the regional trade deal takes effect 60 days after the depositing of instrument of ratification, the immediate impact that will be felt by the country would be the “wider cumulation or sourcing of raw materials,” said Gepty, as the Philippines will then be part of the world’s largest free trade area.
Local producers and manufacturers will be able to source their raw materials and intermediate goods in their manufacturing activities from the 14 signatory countries including China, Japan, South Korea, Asutralia and New Zealand that had ratified RCEP ahead of the Philippines.
At the same time, domestic producers and manufacturers can export their goods at a preferential rate or treatment in the RCEP countries, Gepty said.
Foreign business groups in the Philippines have said they look forward to working with the government to improve the country’s investment climate in light of the “new opportunities” the trade deal provides.
In a statement in February, the Joint Foreign Chambers said the Senate’s green light to the treaty “reinforces the decision of many of our members to invest in the Philippines and will attract more investment from our home countries.”
Trade Secretary Alfredo Pascual said that with the RCEP ratification, Philippines signalled its readiness to attract foreign investors, particularly in the areas of manufacturing and innovation.
The RCEP region accounts for 50% of the global manufacturing output, 50% of global automotive products, 70% of electronic goods, and the main global value chain hubs of China, South Korea, and Japan.
