RCEP member countries to fast track negotiation

MANILA, Philippines — Due to various contentious issues on market access that have placed negotiations at a stalemate, Regional Comprehensive Economic Partnership (RCEP)-member countries are embarking on a parallel process to fast track negotiations toward a substantial conclusion of the trade deal by year-end.

Trade Undersecretary Ceferino Rodolfo, who is the Philippine lead for ASEAN Economic Ministers’ Meeting, said RCEP member have commenced with a “request and offer process” wherein specific products that would be given zero percent duty by each country would be identified.

“The engagement on market access side continues. What is good here is whereas previously we are pegging substantial conclusion only in terms of getting these numbers and getting the targets, this one we have proceeded already with the exchange and offers so that in addition on the target, we have a clear idea of what specific products the other country will offer to you,” Rodolfo said in a briefing yesterday.

“What we have done now is parallel and it’s not anymore sequential. Even without firm agreement on the targets, we are already starting the request and offer process because it might happen that while substantial energy and focus is being devoted to the question of what the target is, in parallel if we are already able to exchange our request and offers, it might happen that with those request and offer process, you are already covering substantially your commercial interest in a particular country is,” he said.

The level of liberalization in the trade of goods has been among the contentious issues that have remained unresolved among the 16-member nation RCEP.

“In market access, we continue discussions on deepening of commitments of each other…to make sure that the commercial interest of each countries are reflected in the respective offers of the different partners,” Rodolfo said.

“For the rules side, this will involve discussions on certain discipline, some of the value add elements like ratchet and most-favored nation and really having an understanding on where each country stands and what is doable and what is not,” he said.

RCEP aims to achieve a modern, comprehensive, high-quality and mutually beneficial economic partnership agreement between the 10 ASEAN members states and six free trade agreement partners that include China, Korea, Japan, Australia, New Zealand, and India.

RCEP is poised to boost global growth by expanding the ASEAN consumer base of 620 million to 3.5 billion, integrating the major economic player markets, which will account for almost half of the world’s population and almost 30 percent of global gross domestic product.

For the Philippines, Rodolfo said RCEP remains an important engagement as 60.54 percent of the country’s total trade is centered on the 15 RCEP participating countries and more than 51.85 percent of exports going into these countries.

He said achieving a single set of rules to do business with member countries would significantly facilitate the conduct of business and spur growth of the country’s industries.