Trade ministers conclude RCEP with world’s mega trade deal in the bag, deeper cooperation seen

Victoria “NIKE” De Dios

The Regional Comprehensive Economic Partnership (RCEP) resulted in a fruitful, deeper commitment and synergy with participating countries as they resolved almost all remaining outstanding issues of the trade deal.

Trade Secretary Ramon Lopez shared the result of their productive meeting with fellow trade ministers from the Association of Southeast Asian Nations and its five partners.

In the virtual 8th RCEP Intersessional Ministerial Meeting (8th RCEP MM) held this afternoon August 27, 2020, Trade Secretary Ramon Lopez said, “While there were many challenges along the way, we kept our focus on the value and importance of RCEP and the merit of fostering regional cooperation.”

With the trade ministers of the Association of Southeast Asian Nations (ASEAN) and its five partners namely, Australia, China, Japan, New Zealand, and South Korea, Secretary Lopez said, this advanced significantly the negotiation and will certainly pave the way to its signing in November 2020.

“The conclusion of RCEP negotiation is a good symbol that notwithstanding the current pandemic, many great things can be accomplished, such as the affirmation of an international rules-based system for trade and investment in the region,” the Trade Chief added.

Launched in November 2012, RCEP is an initiative by ASEAN to encourage trade among its member states and its Free Trade Agreement (FTA) partners. Without India, RCEP accounts for 30% of the world’s global population at 2.2 billion and 28.2% of the global GDP at a combined USD23.9 trillion, much larger than other regional trading blocs.

RCEP trade ministers set to conclude world’s mega trade deal

The bloc would also account for 27.8% of the total trade at USD10.5 trillion, with USD5.5 trillion in exports and USD4.9 trillion in imports, and contribute to 23.6% of global inward foreign direct investment (FDI) and 33.5% of global outward (FDI).

“With RCEP, enhanced market access for trade and investment will be established. This means that the Philippines can improve its export competitiveness in key products—such as garments, automotive parts, and agricultural products like canned food and preserved fruits—while encouraging more investments in the country in vital sectors such as research and development, financial services, game development, and IT-BPO,” said lead negotiator Assistant Secretary Allan Gepty.

“RCEP is a major milestone for the region and its partners, and is definitely more comprehensive than any FTA of ASEAN,” the Trade Chief added.

Notwithstanding the significant progress of the negotiations, the trade ministers remained open to the participation of India in RCEP.

Meanwhile, the Trade Secretary also cited that the momentous trade deal, poised to be signed by November this year, will have a major impact on jobs for the Filipino people and the enhanced participation of MSMEs in the global value chain.

“We are optimistic for the future of the country as we are set to conclude a historic milestone, especially in this time of crisis and the region’s post-pandemic recovery,” Sec. Lopez concluded.