The Regional Comprehensive Economic Partnership entered into force in the Philippines on Friday, marking a milestone with the world's largest free trade pact being fully effective for all 15 member countries.
"We see the RCEP as a critical key for inclusive economic growth not only for the Philippines but within the ASEAN," said Philippine Trade and Industry Secretary Alfredo Pascual.
Describing the RCEP as "a modern, comprehensive, high-quality and mutually beneficial economic partnership", Pascual said the Philippines had secured enhanced market access for its key products, such as preserved pineapples, durian, chocolate and ignition wiring sets.
The pact groups 10 Association of Southeast Asian Nations members, China, Japan, South Korea, Australia and New Zealand. It is estimated to increase the Philippines' GDP by 2.02 percent after its participation, according to a study by the Philippine Institute for Development Studies.
For 29-year-old Jomar Abdon, who works in a durian processing facility in the Philippines' Davao City, access to the enormous Chinese market is a bonanza and will bring more work as well as added income.
"More people will benefit from the proceeds," he said.
In April, the Philippines shipped the first batch of fresh durian to China under a protocol signed in January, which opened up the fast-growing Chinese market to the tropical fruit that is widely grown in Southeast Asia.
Under the RCEP pact, the export of products such as durians is not only facilitated by additional tariff reduction and elimination but also by trade facilitation measures to speed up customs clearance procedures, which is especially beneficial for the trade of perishable products.
Also, durians and many other tropical delights from Southeast Asia are enjoyed by consumers in China as improved transportation networks like the China-Laos Railway provide faster fruit delivery services.
Allan Gepty, the Philippine lead negotiator in RCEP talks, said his country will gain benefits and opportunities in trade, goods, services and investments in RCEP.
"We are able to secure better market access for key products in China, South Korea, and Japan. In addition, we have other guaranteed market access for services for Filipinos," Gepty said at a news conference.
Since it entered into force in January 2022, the RCEP has enhanced trade liberalization and investment facilitation, and strengthened regional supply chain and economic integration, said Auramon Supthaweethum, director-general of the Department of Trade Negotiations of Thailand's Ministry of Commerce.
Joseph Matthews, a senior professor at the BELTEI International University in Phnom Penh, capital of Cambodia, said the RCEP supports an open, free, fair, inclusive and multilateral trading system, and that it has strengthened supply chains in the region and promoted the participation of micro, small and medium-sized enterprises in the regional value chains.
Moreover, the RCEP introduces the regional value chain that provides greater opportunities for manufactured products to participate in the global value chain, said Edi Prio Pambudi, deputy for Coordination of International Economic Cooperation in the Indonesian Coordinating Ministry for Economic Affairs.
As Trade and Industry assistant secretary, Gepty said that for the Philippines, the current challenge is to help stakeholders understand how to trade and do business in the region.
"Our professionals, our service providers, must understand how to seize the opportunities offered by the agreement, and know how to invest in the RCEP region and protect their investments," he said.
