To diversify markets
MANILA, Philippines — The country’s largest business organization is urging the government to accelerate efforts to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to expand markets being served by local businesses amid protectionist policies being imposed by other countries.
In a statement, the Philippine Chamber of Commerce and Industry (PCCI) said it is strongly endorsing the Philippine government’s formal application to accede to the CPTPP.
“We urge the government to pursue this accession with urgency and look forward to supporting the process,” the PCCI said.
Earlier, the Department of Trade and Industry said it is aiming to formally submit its application to join the CPTPP this year.
The multilateral trade agreement sets high standards for its member countries.
At present, the CPTPP is composed of Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam and the United Kingdom, representing a combined population of over 500 million and a gross domestic product of $13.5 trillion.
For the PCCI, joining the CPTPP is critical for securing the country’s economic future amid increasing global trade fragmentation and protective measures being imposed by other countries.
“This accession is not merely an opportunity but a strategic necessity. With key trading partners becoming more cautious toward imports to reinforce their own domestic industries, the Philippines must proactively diversify its export markets and reduce its vulnerability,” the PCCI said.
The group said joining the CPTPP would give the country preferential access to markets where it currently lacks bilateral trade agreements.
“For Philippine enterprises, from large corporations to micro, small and medium enterprises, this translates into reduced tariffs, greater predictability in trade rules, and enhanced investment prospects,” the PCCI said.
Joining the CPTPP is also expected to encourage businesses to expand their reach, integrate into regional value chains and compete on a global scale.
Apart from being aligned with the goals of the Philippine Development Plan 2023 to 2028, joining the CPTPP is expected to expand the country’s trade agreements, including the Regional Comprehensive Economic Partnership, as well as bilateral trade deals with Japan, South Korea and the European Free Trade Association.
“The PCCI believes that CPTPP membership is a decisive step toward future-proofing the Philippine economy. It will attract high-quality investments in the country, create jobs and provide our businesses with the platform they need to thrive in an increasingly competitive and protectionist global environment,” the group said.