
THE Pilipino Banana Growers and Exporters Association, Inc. (PBGEA) expressed its support for the Senate’s ratification of the Regional Comprehensive Economic Partnership (RCEP) trade agreement.
The Senate has until Feb. 4 to decide on RCEP’s ratification before it goes on break ahead of the national elections.
PBGEA Executive Director Stephen A. Antig said in a letter addressed to Senate Committee on Foreign Relations Chairman Aquilino Martin Pimentel III on Jan. 31 that RCEP will help ensure the sustainability of the banana industry, which is threatened by the surging cost of inputs such as fertilizer, packaging material, plastics, and freight.
“(The industry) is threatened by the unprecedented increase in prices of imported key inputs like fertilizer by 100%, kraft paper used for boxes by 53%, plastics by 65%, and maritime freight by more than 100% due to global shortages of containers and the movement of fuel prices,” Mr. Antig said.
“Studies show that with RCEP, the Philippines along with Vietnam, a major competitor in supplying the foreign markets with fresh banana and other tropical fruits, would be winners because of the decline in trade costs. We cannot afford to miss out this opportunity of being a part of the world’s most important regional economic bloc,” he added.
Trade Secretary Ramon M. Lopez said via Viber that the Philippines should participate in RCEP because of the opened up for various industries.
“We should not be inward-looking. If we are not part of (RCEP), while our neighbors are, imagine which exporters will gain shares in those markets. Our market shares in exports of pineapples, bananas, canned tuna and fish products, coconut, cacao, garments, electronics and the like will erode,” Mr. Lopez said.
“Opportunities for our professional service exports such as engineers and architects will not be maximized. We will lose the gains we had. Investors would rather go to those countries with more market access. This will be the effect of an inward-looking policy. (There’s) no reason to delay,” he added.
RCEP, which started taking effect on Jan. 1, has been ratified by Brunei, Cambodia, Laos, Singapore, Thailand, Vietnam, Australia, China, Japan, New Zealand, and South Korea. It is touted as the largest trade deal in the world and is projected to help economic recovery from the coronavirus disease 2019 (COVID-19) pandemic by boosting global trade. — Revin Mikhael D. Ochave