Farmers seek consultations before RCEP ratification

MANILA, Philippines — A farmers’ group is urging the Senate to defer the ratification of the Regional Comprehensive Economic Partnership (RCEP) trade agreement as stakeholders have yet to be consulted on its impact on the country’s agriculture sector.

In a statement yesterday, the Federation of Free Farmers (FFF) claimed that the Department of Agriculture (DA) has not conducted any formal consultations with farmers and other stakeholders on the scope and levels of tariff and other commitments it has pledged under the RCEP.

“We are in the dark as to what the government has committed to other RCEP countries with respect to our agricultural products,” said FFF national manager Raul Montemayor.

“There used to be a committee of International Trade (CIT) under the DA, through which stakeholders were regularly consulted on the department’s negotiating strategies and positions. Unfortunately, Secretary William Dar disbanded this committee when he assumed office in 2019, and there has been absolutely no consultation ever since on any trade negotiation, including the recently concluded Philippines-Korea Free Trade Agreement, and now the RCEP,”he said.

The RCEP is a multilateral trade agreement between and among ASEAN countries, including the Philippines, China, Japan, South Korea, Australia and New Zealand.

It provides for an open, inclusive and rules-based trading system to promote deeper economic integration in the region.

The RCEP is expected to boost Philippine exports through enhanced market access in the region.

It would provide cheaper goods for production and manufacturing, as well as ensure transparent rules and clear mechanism for resolving trade issues and concerns, and would also allow micro, small and medium enterprises to participate in the global value chain.

According to the FFF, the Philippines  has generally not taken advantage of trade opportunities arising from previous trade agreements, including the General Agreement on Tariffs and Trade-Uruguay Round (GATT-UR) under the World Trade Organization (WTO), and regional agreements such as the ASEAN Trade In Goods Agreement (ATIGA), and bilateral agreements with China, Japan, Korea, Australia and New Zealand.

“Our exports have not grown significantly, and we have failed to promote and export goods other than traditional commodities such as banana, pineapple and coconut-based products.  There is no dedicated program to help farmers produce export-grade products, nor are processors and exporters given ample support to comply with international standards and compete with other countries,”Montemayor said.

“Meanwhile, our imports of food and other agricultural products have increased, resulting in escalating agricultural trade deficits and reduced farm incomes during the past two decades,”he said.

The FFF urged the Senate Committee on Foreign Relations to require the DA to undertake a detailed and comprehensive consultation with stakeholders before taking further action on the RCEP ratification proposal.

The group also asked the committee to instruct the DA to commission an independent review and assessment of the impact of ongoing free trade agreements on Philippine agriculture and small farmers, and the potential effects of RCEP on the country’s sensitive agricultural sectors.

The RCEP was ratified by President Duterte on Sept. 2 and is now with the Senate for concurrence.

“We hope to finish the concurrence process the soonest possible time so that the Philippines can already deposit its instrument of ratification, and be one of the first set of economies to benefit from the agreement once implemented by early 2022, as targeted,” Trade Secretary Ramon Lopez said last week.