India can benefit from RCEP through Philippines, says Trade chief Lopez

Despite pulling out from the Asian mega trade deal, India can still rip the benefits of the Regional Comprehensive Economic Partnership (RCEP) through its trade and investment relations with the Philippines, a signatory in the trade pact, Trade Secretary Ramon Lopez said Thursday.

 “Given that India did not pursue its partnership in the Regional Comprehensive Economic Partnership  or RCEP, Indian businesses can still benefit from the mega free trade agreement through the Philippines’ own participation,” Lopez said during the virtual Philippines-India Business Conference.

In November last year, the Philippines along with its 10 peers in Southeast Asia and China, Japan, South Korea, New Zealand, and Australia, signed the RCEP —which will facilitate free or liberalized and simplified trade among the participating nations in the Trans-Pacific Region.

The regional trade deal is expected to be the world's largest in terms of both population and gross domestic product (GDP).

The RCEP is expected to strengthen regional economic development through easier market access for goods and services, as well as stabilize the market predictability on trade regulations and rules.

RCEP negotiations include trade in goods, trade in services, investment, economic and technical cooperation, intellectual property, competition, dispute settlement, e-commerce, small and medium enterprises (SMEs), and other issues.

India was initially included in the negotiations for the trade deal, but eventually pulled out last year reportedly over various concerns, including possible influx of cheap Chinese products.

“Once it becomes effective, RCEP is expected to boost intra-regional investment in the region. Investment-led trade with ASEAN (Association of Southeast Asian Nations) is expected to play a vital role in this agreement,” Lopez said.

“As the Philippines and India continue to build stronger trade and investment ties, we hope that you will partner with us in pursuing Philippines’ economic recovery in the post-COVID future,” he added.

For his part, Indian Ambassador to the Philippines Shambhu Kumaran said India and the Philippines “is going through a phase of rapid intensification and growth led by our two leaders, our Prime Minister Narendra Modi and President of the Philippines Mr. Rodrigo Duterte.”

Kumaran said the two countries will be strengthening strategic Indo-Pacific partnership between Manila and New Delhi.

“India is and will remain a very strong partner in pharmaceutical and healthcare,” the envoy said.

The Indian ambassador also highlighted that Indian businesses can partake in the Philippines’ “Build, Build, Build” infrastructure initiatives.

Amid concerns on the regional free trade pact, the DTI has earlier said that rice and other agricultural produce from the country are protected from tariff reductions and eliminations under RCEP.

Trade Assistant Secretary for International Trade Policy and Trade Negotiation Allan Gepty clarified that existing tariffs under the Rice Tariffication Law will remain intact as rice is excluded from tariff reductions and removal under the RCEP.

Source: GMA News Online