THE agriculture industry has been provided adequate safety nets to protect it from any disruption that may result from the Regional Comprehensive Economic Partnership (RCEP) trade deal, the Department of Trade and Industry (DTI) said.
Trade Secretary Ramon M. Lopez said in a statement Friday that RCEP, which the Senate is currently in the process of ratifying, has enough safety nets and is sufficiently flexibles to respond to any threats to industry that may suffer from liberalization.
“Under RCEP, tariff protection remains for highly sensitive products, including swine meat, poultry meat, potatoes, onions, garlic, cabbages, sugar, carrots, rice, cement, and flat-rolled products of iron or non-alloy steel,” Mr. Lopez said.
“These products, while excluded from RCEP, would still enjoy the other benefits that the agreement offers. In addition, appropriate trade remedies remain in place including World Trade Organization (WTO) global safeguards and an RCEP transitional safeguard,” he added.
RCEP came into force on Jan. 1 and has been ratified by Brunei, Cambodia, Laos, Singapore, Thailand, Vietnam, Australia, China, Japan, and New Zealand. On Feb. 1, South Korea is also set to implement the trade agreement.
The Senators debating accession to the treaty have been hearing objections from farmers who say that many of them are unprepared for open competition.
According to Mr. Lopez, the trade agreement provides that WTO safeguards can still be availed of if there is an increase in imports that threaten a domestic industry.
He added that RCEP has a transitional safeguard that can address the surge in imports, which will allow participating parties to suspend further reduction of customs duties or increase customs duties.
“Anti-dumping and countervailing measures are also available which reaffirm parties’ rights and obligations under relevant WTO agreements. In other words, issues and concerns of some groups of farmers are fully addressed,” Mr. Lopez said.
Mr. Lopez said the Philippines cannot afford to stay out of RCEP as it would be “catastrophic” for trade and investment.
“The signal to the country’s trading partners and would-be investors is negative as it conveys that the Philippines is embracing an inward policy, not to say a protectionist stance. This is aligned with our current economic reforms and policy direction,” Mr. Lopez said.
Trade Assistant Secretary Allan B. Gepty said foreign competition by virtue of the Philippines’ participation in the WTO and other free trade agreements (FTAs),
Mr. Gepty said some of the FTAs include those with Association of Southeast Asian Nations (ASEAN) member-states and other countries participating in RCEP.
“In other words, competition… is not totally new. If there is something new in RCEP it is more of coverage of the free trade area and the rules and disciplines,” Mr. Gepty said.
Mr. Gepty added that RCEP allows adjustments to commitments made under the trade deal for exceptional circumstances that affect a country’s economy and industries.
“The RCEP negotiators acknowledged this possibility and therefore incorporated various mechanisms in the FTA that act as safety nets so that RCEP countries are able to address these circumstances. These are on top of the available measures to the Philippines under the WTO agreements,” Mr. Gepty said.
“Given this, our local industries including the agricultural sector should look at RCEP as a platform for more and bigger opportunities ranging from improved market access in the RCEP region, cheaper access to raw materials, wider cumulation area, trade facilitative measures, and even investment in smart agriculture and research and development,” he added.
According to the DTI, the trade deal also has sufficient flexibility to address emergency, security, and health and safety concerns.
It added that there are carve-outs for taxation measures as well as measures to safeguard the balance of payments for parties facing external financial difficulties.
“Under the (general exceptions) provision, RCEP countries such as the Philippines are not prevented from implementing measures that are necessary to protect public morals, human, animal or plant life or health, among others,” the DTI said.
“There is also an article on Security Exceptions which states that RCEP countries are also not prevented from taking any action or measures considered necessary to protect essential security interests,” it added. – Revin Mikhael D. Ochave
