Trade ministers of ASEAN countries, partners sign regional free trade pact

The trade ministers of the 10-member states of the Association of Southeast Asian Nations (ASEAN) and its dialogue partners have agreed to sign the China-backed regional comprehensive free trade agreement in November this year, the Department of Trade and Industry (DTI) Wednesday.

In a statement, the DTI said the trade chiefs  of ASEAN countries and  partners Australia, China, Japan, Korea, and New Zealand have reaffirmed to sign the Regional Comprehensive Economic Partnership (RCEP) before the end of 2020 during the 10th RCEP Inter-sessional Ministerial Meeting.

The meeting was conducted via video conference on June 23.

Launched in 2012, the China-backed RCEP aims to create a free trade agreement among 10 ASEAN members - a market of 600 million people – with its six dialogue partners to create an even bigger market of 1.3 billion.

During the meeting, the DTI said Trade Secretary Ramon Lopez joined his fellow trade ministers in confirming the Philippines’ commitment to sign the RCEP Agreement in 2020.

“Together, let us send a strong signal that we continue to deepen our economic partnership despite the challenges and uncertainties in the global trade environment. RCEP remains crucial in restoring business confidence and maintaining a positive outlook in the region,” Lopez said.

The conclusion of the RCEP Agreement gains more importance as there is a need to strengthen and enhance economic cooperation in the region, as well as to mitigate disruptions and usher in post-recovery plans for the COVID-19 pandemic.

The trade ministers also recognized India’s important role in progressing the region’s economic integration efforts and said they would welcome the said country back in RCEP, according to the DTI.

It can be recalled that during the third RCEP Summit in November 2019, Indian Prime Minister Narendra Modi announced the country's withdrawal from the RCEP free trade deal, stating that the current version of the Agreement does not satisfactorily address the concerns of India.

Lopez emphasized that the Philippines stands ready to engage with all RCEP Participating Countries (RPC) in resolving remaining issues in a mutually satisfactory way and finalize the agreement for signing.

Once in force, the regional pact is poised to be the world's largest trade deal by population and gross domestic product (GDP).

The RCEP Agreement is expected to boost the economic environment in the region through enhanced market access for goods as well as services, and by providing stability and predictability on trade rules and regulations.

The trade pact will provide a wider platform to source materials and export products at a preferential rate in bigger markets while at the same time encourage investments in manufacturing, energy, and technology-based industries.

Philippine exports to RCEP members are also expected to expand in sectors such as construction, transport, and machinery equipment, among others, according to the DTI.

Lopez said that the Philippines with its strategic location in the region can also serve as a vital link to various economies in the world, from East to West, from the northern and southern Americas, and into the Asian countries and vice versa. -NB, GMA News