DOF: RCEP to boost Asean economy

MANILA, Philippines — The Department of Finance (DOF) is looking forward to the signing of the Regional Comprehensive Economic Partnership (RCEP) agreement as this would be crucial in the enhancement of trade, investments and economic growth in the Southeast Asian region.

Quoting Finance Secretary Carlos Dominguez’ speech during the International Finance Forum in Guangzhou, China , the DOF said the RCEP would not only improve the synergy between China and the Association of Southeast Asian Nations (ASEAN), but also ensure that the region continues to be an economic leader even amid protectionism policies that threaten global growth.

“We look forward to the finalization of agreements for the RCEP. With this framework for enhancing trade and investment, the development of the economies of the region will be further enhanced,” Dominguez said in his speech.

“We will be able to build a sanctuary for free trade and investment cooperation against the forces of protectionism elsewhere. This will be a major force shaping the development of the world’s economy,” he said.

With plans to be formalized next year, the DOF said RCEP is poised to become the world’s largest trade agreement involving 10 ASEAN member states and five other trading partners, including Australia, China, Japan, New Zealand and South Korea.

According to the finance chief, ASEAN continues to show resilience even in the midst of a global economic slowdown, owing to a “consensus that free trade and more efficient movement of capital is the correct way to go.”

“While protectionism plagues other parts of the world, the economies of Southeast Asia have invested in the free flow of goods, capital and services. This is a major reason why the economies of this region continue to lead in growth” he said.

He also cited China’s support for the liberalization of trade and investments in the region, as demonstrated by the signing of the ASEAN-China Free Trade Area.

Dominguez said China has emerged as the region’s biggest trading partner, with total trade growing at an average of 10 percent per year since 2009. He said ASEAN’s total trade with China reached $483.14 billion in 2018, which is 10 percent higher than the 2017 level.

During the forum, Dominguez also reiterated the Philippines’ support for China’s Belt and Road Initiative (BRI), which he said would open economic opportunities for all countries in the region.

“Improved infrastructure will enhance trade among our economies. Enhanced trade will encourage more efficient investment flows. Improved connectivity will enhance the inclusiveness of our growth patterns. We have everything to gain from this,” he said.