Philippines to push for substantial conclusion of RCEP by year-end

The Philippines vowed on Monday to push for the "substantial conclusion" of a regional trade agreement designed to broaden and deepen engagements among the 10-member ASEAN and its six dialogue partners including China, when the ASEAN trade ministers meet in Manila this week.

Philippine Trade and Industry Secretary Ramon Lopez said the Regional Comprehensive Economic Partnership (RCEP) will expand the Association of Southeast Asian Nations (ASEAN) market from 600 million to 3.5 billion.

RCEP focuses on non-tariff barriers, streamlining and harmonizing custom procedures, and making them more consistent and predictable than in existing agreements.

The comprehensive agreement also covers trade in goods, services, investment, economic and technical cooperation, small and medium enterprises, and dispute settlement.

RCEP negotiations were launched in November 2012 in Phnom Penh, Cambodia, and scheduled to conclude by the end of 2015. While this deadline has passed, negotiations are expected to intensify this year that experts predict that an RCEP deal could occur in 2017.

ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. Aside from China, the five other ASEAN Free Trade Agreement partners are Australia, India, Japan, South Korea and New Zealand.

Lopez, chair of the ASEAN Economic Ministers retreat and related meetings, expressed hope that RCEP will have a "substantial conclusion" by the year-end at the ASEAN economic ministers meeting.

The Philippines is this year's chair of ASEAN meetings.

Lopez said increasing trade and investment in the region is also on the agenda of the three-day meeting which kick off on Wednesday. Specifically, he said the meeting would emphasize on the creation of a sound policy environment and the right mix of support programs, adding these are crucial to improving the capacity of businesses to expand, upgrade and diversify.

"We hope to gather, harmonize and mobilize public-private efforts towards taking full advantage of opportunities under the ASEAN Economic Community pillar," Lopez said.

As lead agency for the AEC pillar, Lopez said the Philippines will promote one of the current thematic priorities of ASEAN on "inclusive, innovation-led growth for spread prosperity." The other two pillars touch on politico-security and socio-cultural.

He said the priority this year is to increase trade and investment, integrating the Micro, Small and Medium Enterprises in the global value chains, and developing an innovation-driven economy.

"Our strategic measures are consistent with our current agenda to promote employment and entrepreneurship," he said.

In April, Philippine President Rodrigo Duterte will chair the ASEAN summit. The bigger ASEAN economic ministers meeting is scheduled in September.

source: Xinhua