As the country finally ratified the Regional Comprehensive Economic Partnership (RCEP) after two years, Department of Trade and Industry (DTI) Secretary Alfredo Pascual has encouraged Philippine-based businesses to take advantage of the benefits of the new trade pact.

Pascual told trade reporters in a virtual briefing Wednesday that the impacts of RCEP depend on how immediate businesses will act following its ratification.

Following Senate’s concurrence with the ratification of RCEP on Tuesday evening, the Philippines will deposit its instrument of ratification to the Association of Southeast Asian Nations (ASEAN) Secretariat.

RCEP will enter into force 60 days after the receipt of deposit of the instrument of ratification.

“We really want to communicate to our business community and the people in general that this RCEP just provides the enabling environment. How we behave given the new favorable environment will determine to what extent we can benefit from it. The government cannot regulate or order this. (But) we make sure that the environment is there,” Pascual said.

As Philippine-based businesses are anticipating the country’s participation to RCEP, the DTI chief said they have been preparing for the increased competition and have been planning how to take advantage of the new free trade agreement.

“More than that, I think investors that are eyeing the Philippines as production hub will now be implementing their intentions and plans to set up manufacturing hubs in the Philippines and making their investments in our country,” Pascual added.

In a separate statement, National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan said the ratification of RCEP strengthens the Philippines’ position as an investment hub in ASEAN.

“With the country’s participation to RCEP, the Philippines has now further strengthened its position as an ideal investment hub in the region as we expand market access, facilitate trade and align our rules and procedures with participating economies,” he said.

Balisacan said this is in line with the overall targets of the Marcos administration’s medium-term plan of creating higher quality, resilient and sustainable jobs to achieve poverty reduction by attracting investments and boosting business expansions.

“With the strong support of Congress, yesterday’s concurrence to the RCEP Agreement is a testament to the government’s commitment to creating an environment conducive for trade and investments that are catalysts for job creation, skills development, and technology transfer as we seek to transform the Philippine economy in the next six years,” he added.

CURRENTPH NEWS SERVICE