Philippine Senate Ratifies RCEP Trade Agreement

MANILA, Feb. 21 (Xinhua) — The Philippine Senate ratified the Regional Comprehensive Economic Partnership (RCEP) trade agreement on Tuesday. This means that ASEAN members have officially endorsed the agreement.

Twenty senators voted for the deal, paving the way for it to ratify the world’s largest free trade bloc, accounting for 30% of the world’s Gross Domestic Product (GDP). One of his senators abstained and one voted against.

The RCEP, which entered into force on 1 January 2022, includes Australia, China, Japan, South Korea, New Zealand, and 10 members of the Association of Southeast Asian Nations, Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam.

Director General of the National Economic Development Agency Arsenio Barisacan said RCEP is “a vehicle to drive sustained growth of the Philippine economy through greater investment in regional and global trade and strategic sectors.”

“Participating in RCEP will further enhance market access, putting us on par with other RCEP participants and the world’s largest economies such as China, Japan and South Korea,” he added. rice field.

Barisakan said joining the RCEP will strengthen the Philippines’ market access for key agriculture-based exports, as partner countries have agreed to reduce tariff rates on Philippine exports.

According to Philippine officials, RCEP covers about 50.4% of the Philippines’ export market, 67.3% of the country’s import sources and 58% of foreign direct investment.

In September 2021, then-Philippine President Rodrigo Duterte ratified the RCEP Agreement and submitted it to the Senate for approval. But before the free trade agreement went into effect on January 1, 2022, the Senate said he could not ratify the deal in December 2021.

In the Philippines, treaties or international agreements require Senate approval for ratification by the President.

Duterte’s presidential term ends in June 2022. Ferdinand his Romualdez his Marcos succeeded Duterte and became the 17th President of the Philippines.

The RCEP is a trade agreement that consolidates the existing regional FTAs ​​of ASEAN members with Australia, China, Japan, South Korea and New Zealand into a modern, comprehensive, high-quality and mutually beneficial economic partnership agreement.

Mega-trade agreements provide an open and comprehensive trading system that can serve as a major platform for deepening and broadening regional economic integration.