Makati businesses push RCEP ratification

MANILA, Philippines — The Makati Business Club (MBC) is pushing for the completion of the ratification process of the mega trade deal Regional Comprehensive Economic Partnership (RCEP) as it welcomed the recent enactment of the amendments to the Public Service Act (PSA) which is expected to promote competition and job creation.

In a statement yesterday, MBC expressed support for the approval of the RCEP, following the passage into law of key economic reforms, including the PSA amendments.

“We look forward to similar success with proposals such as the RCEP bill and commit to working with this and the next administration on these,” the MBC said.

The RCEP agreement, which creates the world’s largest free trade area, was signed by the ministers of the Association of Southeast Asian Nations member states such as 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 in November 2020.

It entered into force last Jan.1.

For the Philippines, however, the RCEP has yet to take effect as it is still pending concurrence of ratification by the Senate.

Trade Secretary Ramon Lopez earlier said a delay in participation or opting out of the RCEP would be detrimental to the economy as trade, investment and other opportunities that the trade deal would bring would be diverted to other economies that are part of the agreement.

He also said the DTI is hopeful the Senate would give its concurrence on the RCEP within the current Congress and that it would be tackled once the session resumes on May 23.

The MBC lauds the recent signing into law of amendments to the PSA which ease restrictions in key sectors by allowing full foreign equity in telecommunications, domestic shipping, railways, subways, airlines, airports, expressways and tollways.

“This is the latest in a series of transformative economic reforms including the revised Foreign Investment and Retail Trade Liberalization laws that we believe will result in beneficial competition and more jobs,” the group said.

The Department of Trade and Industry expects the PSA amendments to bring in $60 billion to $100 billion worth of investments in the next two years.

“An influx of this scale in sectors that will be opened up will mean competition that will benefit Filipinos with better and more affordable products and services, new technology, and most importantly, more jobs,” MBC said.

It said the investments that would enter the country following the recent reforms, would help in economic recovery efforts.

Citing data from the World Bank as of July last year, the group said 4.3 million jobs were lost due to the pandemic, about 10 percent of the total employed workers.

“We trust that officials from designated agencies will properly implement provisions in the new law to protect our national security,” the group said.