With or without RCEP, agriculture needs fixing – DTI chief

MANILA, Philippines — Trade Secretary Alfredo Pascual has emphasized that with or without the country’s participation in the Regional Comprehensive Economic Partnership (RCEP) agreement, the Philippines still needs to improve its farm productivity.

In an interview Wednesday with “The Chiefs” on Cignal TV’s One News, Pascual emphasized that the RCEP is not a magic remedy that will solve the country’s farm productivity problem.

”It doesn’t mean that after we sign the agreement, everything will fall into place. We have to exert effort. We have to implement programs to improve the productivity of our farms so they will be competitive,” Pascual said.
“We still have to improve our farm productivity with or without RCEP, with or without the WTO (World Trade Organization), to improve the economic condition of our farmers,” Pascual said.

Various agriculture groups have been vocal in their opposition to the country’s participation in the RCEP, citing that the sector is not ready to compete in an open market.

Earlier, Department of Trade and Industry (DTI) Assistant Secretary Allan Gepty assured the agriculture sector of protection in an RCEP environment.

Sen. Imee Marcos meanwhile stood her ground against other senators yesterday, insisting that the RCEP agreement will “ravage the countryside and kill our farmers.”

The view of President Marcos’ elder sister contrasted with that of other senators, including Senate President Juan Miguel Zubiri and Senate President Pro-Tempore Loren Legarda who sponsored the RCEP on the floor.

The RCEP is a deal among Association of Southeast Asian Nations (ASEAN) member states together with Japan, South Korea, China, New Zealand and Australia. It authorizes the loosening of trade restrictions and mandates the signatory countries to lower or remove their taxes on traded goods, services, investments, and e-commerce.

Senators like Zubiri and Legarda are convinced the RCEP agreement will not pose any threat to the agriculture sector and that stringent guidelines are to be in place to protect domestic interests.

Senator Marcos, however, is unconvinced. “I am weighing the gain, which is really big. But our farmers and small businesses will suffer the blow… am quantifying gains in electronics and garments against agriculture damage from RCEP. Really a lot to gain economically, but it will ravage the countryside and kill our farmers,” she said.

When asked by The STAR whether or not she will support the RCEP, Marcos replied in Filipino: “It is the job of the DA (Department of Agriculture), BOC (Bureau of Customs) and DTI to deliver on the many promises we made to farmers and small businessmen.”

In his sponsorship of the RCEP Agreement for approval and concurrence in the Senate, Zubiri assured the agriculture sector that the agreement does not pose a threat to them.

“As an agriculturist, I understand the fears of farmers. You know how I will fight for our farmers against excessive imports,” Zubiri said in Filipino.

“That’s why I want to assure the sector that RCEP will not trample on our farmers or kill our agriculture. I won’t even promote it if I don’t see the benefits it brings — and I will be the first to block it if it harms us,” he added.

Zubiri further stressed that highly sensitive agricultural products such as rice, swine meat, poultry meat, potatoes, onions, garlic, cabbage, sugar and carrots, are excluded from tariff liberalization under the RCEP.

In RCEP, the Philippines merely gave additional preferential arrangements to 33 agricultural tariff lines specifically for Australia, New Zealand, China and Korea, compared to the existing ASEAN +1 FTAs (free trade agreements),” he explained.

“And these 33 tariff lines are  equivalent only to 15 products, most of which pose no threat to our local products,” he added.

He identified these 15 products as fish fillet; frozen mackerel; celery; sausages; olives; spinach; olive oil; live swine; live chicken; black pepper; palm nuts and kernels; preserved sweet corn, chilis and other capers; preserved onions; corn starch, and feeds for primates.

“Our trade in these products is very insignificant. Compare it to the benefits we will get from RCEP, there is no doubt that the arrangement we got is better,” he said.

Under RCEP, the Philippines will be able to source raw materials and intermediate goods from fellow RCEP countries, process products locally, and then export the products back out to member countries at a preferential agreement, said Zubiri.

The Asian Development Bank sees the Philippines earning $2 billion from the agreement by 2030. However, among the ASEAN member states, Myanmar and the Philippines have yet to ratify the agreement.

Stringent guidelinesFor her part, Legarda urged for stringent implementation of the guidelines included in the Resolution concurring in the ratification of the RCEP.

“We cannot stand in isolation as we face this huge wave of global and regional economic integration. We need to build capacities and efficiencies to achieve competitiveness,” Legarda said.

“My decision to lend support to the ratification of RCEP is premised on my conviction that an open, transparent, and predictable trade and investment environment generates new opportunities for everyone,” she added.

Legarda noted the rules were based on previous dialogues with the affected industries, specifically the agriculture sector. She has ensured that their issues and concerns will be addressed when the Senate concurs in the ratification of the RCEP.

She added that her support for the treaty requires the commitment of concerned government agencies, as what defines a good treaty for each participating country are its principles and goals in acceding into the accord.

She pointed out the DA, DTI, and Departments of Science and Technology, of Budget and Management, and of Agrarian Reform, and the National Economic and Development Authority, as well as the Tariff Commission, and the Intellectual Property Office must listen effectively and meaningfully to farmers and fisherfolk.

The senator explained that to optimize the benefits of global trading systems, there must be transparency among the cornerstones of transactions in government and with trading partners, as well as information sharing that would keep the various sectors informed of the many opportunities in the domestic, regional and global marketplace.

Legarda underscored the importance of reforms and improvement of programs suited for the sector that RCEP is targeting to advance. She also pointed out the need to create comparative advantages for the country’s economic sectors.

“Lastly, governance must be strengthened and improved, thus, the creation of a Special Oversight Committee on RCEP implementation is included in the filed Resolution to monitor that allconcerned government agencies will provide the needed support to the farmers and other sectors, including the allotment of budget and, technical and financial support,” she noted.

More support for RCEP

Sen. Alan Peter Cayetano called the RCEP a “very good” and “very important” agreement, citing how the Philippines’ participation allows easier exportation and importation of goodsamong 15 countries.

While he agrees that RCEP would bolster the country’s economy, Cayetano urged fellow lawmakers to pass measures that will fund capability-building and safety net programs for those who will be affected by the trade deal.

Cayetano commended Zubiri’s “comprehensive and articulate” presentation on the trade agreement and acknowledged the Cabinet secretaries attending the Senate session in “full force.”

“It’s good to talk about the RCEP now, especially since we can now observe how well our fellow RCEP signatories have been faring since they all green-lit the implementation of the agreement,” Zubiri said.

“I don’t want us to be left behind. I don’t want other countries to see us as isolationist. But it would be wrong to simply argue that we must join it because others did. Rather, we should join out of the belief that it will create a snowball effect on jobs for our people, and market for our produce,” he added.

Part of Cayetano’s legislative agenda is to pass laws that will generate more jobs for Filipinos and empower small and medium enterprises, especially as the country continues to recover from the economic effects of the pandemic.

Executive Secretary Lucas Bersamin and the rest of the Cabinet were present in the session hall to emphasize the importance and urgency of the Senate’s concurrence to the ratification.

The aim of the plenary deliberations is to have the largest free trade pact ratified by next week.

Legarda pointed out that whether or not the RCEP is ratified, the world has already evolved into a global marketplace, with pockets of regional markets. — Cecille Suerte Felipe, Paolo Romero