The Regional Comprehensive Economic Partnership (RCEP) Agreement is expected to increase the trade and investment prospects in the country, the Department of Trade and Industry (DTI) Secretary Alfredo Pascual said on Friday.

The RCEP deal officially took effect in the country on Friday, June 2.

“As RCEP takes effect, we commit to supporting Philippine Businesses in becoming more productive and competitive within the region and globally,” the DTI Secretary said during a press briefing.

“Becoming part of RCEP signals to the community of nations that the Philippines remains adherent to the rules-based trading system. Through this regional FTA (Free Trade Agreements), we re-commit to collaborative efforts that ensure global trade stays open, efficient and resilient to potential disruptions,” Pacual added.

According to the Presidential Communications Office (PCO), RCEP countries “account for 30 percent of global GDP and one-third of total inward Foreign Direct Investments (FDIs) as of 2022.”

The PCO stated that Micro, Small, and Medium Enterprises (MSME) can be incorporated into global value chains (GVCs) through access to cheaper raw materials and a lower barrier to entry for exporting due to a flexible certification procedure for obtaining preferential trade arrangements under RCEP.

The RCEP also allows participating nations to implement enhanced customs procedures, allowing for more efficient and streamlined trade throughout the area.

In contrast to existing trade agreements, RCEP requires exporters to be familiar with a single set of rules of origin (ROO) in order to gain preferential market access.

As part of its efforts to enhance knowledge and utilization of RCEP and other Philippine trade agreements, the DTI is planning an intensified trade education and advocacy campaign this month, targeting several sectors that would be directly affected by the deal.

Written By Dana Ebreo, DZRH News Online Intern