As businesses clamor for the Senate’s ratification of the Regional Comprehensive Economic Partnership (RCEP) Agreement, which many agricultural groups are opposing, senatorial aspirant and Sorsogon Governor Chiz Escudero urged senators to thoroughly review the terms of the agreement, which covers the world’s largest free trade area.
The RCEP, signed by the Philippines in November 2020 and ratified by President Rodrigo Duterte in September 2021, entered into force for other signatory countries on January. 1, 2022. But because it has yet to be ratified by the Philippine Senate, the RCEP remains unimplementable in the country.
“If agricultural stakeholders are right, then we will be removing 75% of our tariff restrictions on agricultural products. What is the long-term impact of that on our farmers and fisherfolk? As it is, they are already the poorest sector in the Philippines,” Escudero, a veteran legislator, said.
He noted that even now, the country is turning to imports to address the food shortage following the catastrophic impact of Typhoon Odette. The Department of Agriculture has announced that it will be importing 60,000 metric tons of galunggong, mackerel and other small pelagic fishes to address a projected a fish supply shortfall of 119,000 MT in the first quarter.
“Isn’t it tragic that the Philippines, the world’s second largest archipelago, is importing fish to ensure food security? How have we come to this? How has the agriculture sector become incapable of producing sufficiently for the country? This, to me, is a sign that somewhere, somehow we have done wrong our farmers and fishers, and we owe it to them to carefully study more trade agreements that could leave them even more vulnerable to imports,” Escudero said.
According to the Department of Trade and Industry, the RCEP, if ratified, will represent 51% of the Philippines’ exports, 68% of imports, and 58% of sources of foreign direct investments (FDI). Globally, RCEP is said to account for 29% of trade, 29% of Gross Domestic Product, 33% of inward FDI, 47% of outward FDI.
“Nobody wants to be left behind in a global economy, but we must be absolutely certain that in entering into more trade deals, we do not leave behind the most vulnerable sectors of our local economy. Growth must always be inclusive, or it will only perpetuate the cycle of poverty,” Escudero said.
Philippine Statistics Authority (PSA) data from 2018 showed that poverty incidence was highest among farmers (31.6%), fisherfolk (26.2%) and individuals living in rural areas (24.5%). In 2015, the same sectors were also the poorest, with poverty incidences at 40.8% among farmers, 36.9% among fisherfolk, and 34% among rural-based individuals.
“Hindi puwedeng malalaking negosyo lang lagi ang makikinabang. Sa ngayon, ang naririnig natin na nagmamadaling i-ratify ito ng Senado ay malalaking exporters at traders, ngunit patuloy ang oposisyon mula sa mga nasa sektor ng agrikultura. Sa tingin ko ay dapat pagtuunan ng panahon at busisiing mabuti ng ating mga senador ang RCEP. Hindi kailangang magmadali—kailangang maging sigurado,” Escudero said.
The former senator noted that like the RCEP, the Philippines’ accession into the World Trade Organization in 1994 promised cheaper manufacturing costs, more jobs, greater access to free trade markets, and increased competitiveness for Philippine industries, but the reality has not been as rosy.
The agriculture sector’s share in the GDP has dropped from 20% in 1997 to 10% in 2020. In 2021, the agriculture sector’s output contracted by 3.3% in the first quarter, 1.5% in the second quarter and 2.6% in the third quarter, according to the PSA.
“As we move to secure our participation in global trade, we must make sure that we are not crippling ourselves and our ability to produce our own food, support our own sectors and improve the lives of our people. This is something the Senate must consider as it looks into the terms of the RCEP,” Escudero said.
ASEAN members that have ratified the RCEP are Brunei, Cambodia, Laos, Singapore, Thailand, and Vietnam, as well as non-ASEAN trade partners Australia, New Zealand, China, and Japan.