MANILA, Philippines — The Philippines is pushing for stronger multilateral cooperation by keeping trade open and reducing unnecessary measures for unimpeded trade particularly on essential goods amid the pandemic.
Speaking at the Belt and Road Summit organized by the Hong Kong government and the Hong Kong Trade Development Council yesterday, Trade Secretary Ramon Lopez said that while free trade agreements (FTA) like the Regional Comprehensive Economic Partnership (RCEP), Association of Southeast Asian Nations (ASEAN)–Hong Kong and ASEAN–China deals are seen to open opportunities for businesses for post-pandemic recovery, countries may need to do more to strengthen multilateral cooperation and ensure trade is unimpeded.
“For the Philippines, it is important therefore to support initiatives that keep markets open and ensure the unhampered flow of essential goods and services by reducing unnecessary trade measures,” he said.
Among these initiatives is the memorandum of understanding signed by ASEAN members last year on the implementation of non-tariff measures on essential goods.
The initiative calls for ASEAN countries to refrain from introducing or implementing restrictive trade measures on goods considered essential in addressing the coronavirus pandemic such as medicines, medical supplies and equipment.
At the height of the pandemic and lockdowns imposed last year, Lopez said the Philippines did not impose export restrictions on personal protective equipment like medical grade masks even if there was strong domestic demand for that product as the government saw the need for exporters to honor their contract and fulfill their deliveries.
“It may be useful for those part of the Belt and Road initiative to consider a similar arrangement with ASEAN to show our stakeholders our collective effort to ensure supply chains remain open regardless of the pandemic and that essential goods remain available to our people,” he said.
He said businesses should also take advantage of the opportunities offered by the different FTAs.
“We encourage the business sector to really take advantage of RCEP which can really intensify not only connectivity in terms of establishing free trade area, but also help trickle more investments particularly in infrastructure in the region that will boost economic activities,” he said.
For RCEP, which was signed by ASEAN members the Philippines, Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Singapore, Thailand and Vietnam, as well as trade partners Australia, China, Japan, South Korea, and New Zealand, he said participating countries would benefit in terms of improved export competitiveness and global sourcing of raw materials.
He said the agreement would also provide a stable and predictable business environment for investors, as well as support for micro, small and medium enterprises.
For his part, LT Group president and chief operating officer Michael Tan said in the same event, businesses recognize opportunities to be provided by the RCEP for the country.
He said RCEP is expected to help make Philippine goods more competitive, as well as position the country as a good investment site for manufacturing.
“It will bring in much needed foreign direct investments and spur our manufacturing sector, while complementing the agriculture, service, tourism, and business process outsourcing sectors,” he said.
“It will give impetus to jumpstart the economy from what happened in the past year and a half,” he added.