MANILA, Philippines — Senate lawmakers clarified that the country’s major agricultural products will be excluded from tariff reductions after the Philippines ratified its membership to the China-backed Regional Comprehensive Economic Partnership.
That was what Senate President Juan Miguel Zubiri assured in a media briefing on the free trade agreement on Friday.
“Tariff rates for corn, rice, grains, fruits, and vegetables will remain. Even tariffs on pork and beef will not see any changes whether we join the RCEP, it’s the status quo,” he said.
The agriculture department is still led by President Ferdinand Marcos Jr.
A document culled from the official RCEP website showed that exports of 97 Filipino-produced goods will enjoy reduced, or even zero, tariffs once the country formally joins the free trade agreement.
Even then, concerns abound as the Philippines joined the free trade agreement as agriculture stakeholders criticized the country’s readiness, as competition could hurt small farm holders and businesses.
RCEP is considered the world’s largest free trade agreement, which considers 15 countries that comprise 29% of the world’s gross domestic product. Most ASEAN countries are already part of the trade pact.
As it is, the free trade agreement looks to reduce tariffs, by at least 90% in some instances, and encourage greater market movement within member nations.
Flood of cheap imports?
The Philippines is in the middle of safeguarding its economic recovery from the pandemic. That has been exacerbated by painfully high inflation and supply chain disruptions.
But the entry could come at a cost, as some international nonprofit organizations echoed in past years that the RCEP did not contain provisions to safeguard labour rights, human rights and the environment.
There were also concerns that imports would flood the country, as export barriers could loosen in the wake of the Philippines joining RCEP. The Philippines' trade balance almost always stayed in a deficit, one exacerbated in past months by expensive fuel shipments and looming recession fears for its trading partners.
But the Department of Trade and Industry stressed that this would not happen provided that production within the economy improved.
“Farm productivity is a big issue. If we can produce there will be a market, that will counter the increase in imports,” DTI chief Alfredo Pascual told Philstar.com. “We’re already flooded with imported goods.”
As it is, the Philippines has not sent its instrument of ratification. Doing so entails that these supposed benefits will kick in 60 days once the ASEAN Secretary-General receives the document.
The trade department noted that once the country formally joins RCEP, some products will enjoy enhanced market access. These include pineapples, coconut juice, fish fillet, chocolates, and ignition wiring sets.