MANILA, Philippines — The government is closely monitoring imports to detect if there are any surges following the implementation of the mega trade deal Regional Comprehensive Economic Partnership (RCEP) agreement, the Department of Trade and Industry (DTI) said.
During the recent Philippine Economic Briefing, Trade Secretary Alfredo Pascual said the DTI has put in place an import surge monitoring system in relation to the implementation of the RCEP amid concerns about the entry of foreign products into the country.
“So, we are monitoring (imports),” the DTI chief said.
According to Pascual, many business organizations and companies have already registered in the import surge monitoring system.
In particular, he said sectors that are interested in this monitoring are those engaged in the manufacture of steel, cement, wood and ceramics.
“So, this is an important support system that we are providing our manufacturers in the Philippines so that we can protect their market in cases of dumping from foreign producers that are availing of the reduced tariff of RCEP and other FTAs (free trade agreements),” Pascual said.
Dumping takes place when exporters are selling their products to an importing country at a price lower than its normal value when consumed in their home market.
If a surge is detected in the monitoring of imports, Pascual said the DTI would study the situation in the source country and conduct a probe.
The import surge monitoring system was launched in May 2023, while the RCEP came into force in the country the following month.
Signed in November 2020 by the Association of Southeast Asian Nations including the Philippines with their trade partners China, Japan, South Korea, Australia and New Zealand, the RCEP accounts for 30 percent of the world’s population, trade and gross domestic product.
The mega trade deal aims to streamline trade and investment flows, reduce trade barriers, as well as provide a more transparent and predictable business environment.
It covers trade in goods, services, investments, economic and technical cooperation as well as dispute settlement, among others.