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The Philippine American Chamber of Commerce (AmCham) has joined the call for the Senate to approve the Regional Comprehensive Economic Partnership (RCEP) immediately, claiming that the trade agreement is in line with the government’s economic reforms and programs.

AmCham said in a statement on Thursday that the RCEP complements the administration’s previous policies to help create a more conducive business environment amid the pandemic.

“The RCEP’s coming into force complements the Philippines’ plans and policies for the comeback of the manufacturing sector, notably the incentives offered by the CREATE (Corporate Recovery and Tax Incentives for Enterprises) Act,” AmCham Philippines executive director Ebb Hinchliffe said.

According to Hinchliffe, the CREATE law’s fiscal incentives and the recently approved Retail Trade Liberalization bill make the Philippines more appealing to American investors.

He claims that foreign investors’ interest in the Philippines will grow after the country implements the RCEP’s free trade agreement (FTA).

The country is currently waiting for the Senate’s approval before depositing its ratification instrument.

The Philippines will begin to benefit from the trade agreement 60 days after depositing the ratification instrument.

Since the beginning of the year, the RCEP has taken effect in Australia, Brunei Darussalam, Cambodia, China, Japan, Laos, New Zealand, Singapore, Thailand, and Vietnam. On February 1, South Korea will follow.

The trade agreement also includes Indonesia, Malaysia, and Myanmar.

“We would like to underline the need of Senate approval of the RCEP as soon as feasible so that Filipino and American businesses operating in the country can fully benefit from the deal.” We already know we’re behind because the deal went into effect on January 1, 2022. “By early 2022, we hope to see the government implement the accord,” Hinchliffe added.

Philippine-based enterprises will benefit from the world’s largest FTA, according to Assistant Secretary of Trade and Industry Allan Gepty, who is also the country’s lead negotiator for RCEP. Through the world’s largest FTA, Philippine-based enterprises will have broader sources of raw materials at lower tariffs — zero duty for most products.

The 15 participating countries’ harmonized trade rules also provide constancy among the RCEP members’ tough economic and geopolitical environment.

“We see RCEP as a platform for our members to source cheaper local goods for production and manufacturing, as well as benefit the country’s vital sectors like creative industries, financial services, research and development, IT-BPM (information technology and business process management), professional services, and energy,” Hinchliffe added.

He stated that the business community is willing to assist the government in executing the FTA.

“The Philippines cannot afford not to join RCEP because it would send a negative message not just to foreign investors but also to Asean (Association of Southeast Asian Nations),” he said.

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