Local manufacturers of canned tuna and sardines are supporting the ratification of the Regional Comprehensive Economic Partnership (RCEP) Agreement, which is still pending in the Senate.
In a news statement issued on Tuesday, the Tuna Canners Association of the Philippines (TCAP) and the Canned Sardines Association of the Philippines (CSAP) sought for the Senate’s concurrence for the mega trade deal.
“Our inclusion in RCEP will be instrumental in helping the canning industry recover from the economic setbacks brought on by the global pandemic,” said Francisco Buencamino, who serves as executive director for both groups.
RCEP, which entered into force this month, is a free trade agreement among Asean countries and their trading partners including Australia, China, Japan, New Zealand and South Korea. This represents 30 percent of the global gross domestic product (GDP) or $26.2 trillion.
The canning industry official said that RCEP would help the local canned tuna sector to be as competitive as its neighbors in Indonesia, Thailand, Vietnam and Malaysia.
“Although the tuna industry does not tailor itself to be part of basic necessities food group, its contribution to GNP [gross national product] via its foreign currency export proceeds has always been meaningful for this Mindanao-based industry,” he said. “The canned tuna industry stands to gain from RCEP via the expected increase in domestic demand resulting from the improved economic performance of key sectors such as manufacturing, the service sector and even agriculture due to access to markets as well as investments.”
Apart from being at par with other countries in the region, Buencamino said that the trade deal would also result in job creation for the sardine industry.
He noted that the industry and its suppliers provide direct employment to at least 80,000 to 100,000 workers.
“A growing export base for the sardine industry will help keep prices for the domestic market more manageable and allow the category to continue to grow,” he said.
In separate statements collected by the Department of Trade and Industry, several investment promotion agencies and business organizations also backed the RCEP ratification.
These include the Philippine Economic Zone Authority of Freeport Area of Bataan, Aurora Pacific Economic Zone and Freeport Authority, Clark Development Corporation, Cagayan Economic Zone Authority, John Hay Management Corporation, Poro Point Management Corporation, Regional Board of Investments-BARMM, Subic Bay Metropolitan Authority, Subic-Clark Alliance for Development Council, Zamboanga City Special Economic Zone Authority and Japanese Chamber of Commerce and Industry in the Philippines.
Earlier, local and foreign business groups expressed their support for the same call.
“As business associations representing major industrialized economies, we are concerned the Philippines export industry that has been severely hit by the pandemic, will miss out unless this free trade agreement is approved by the Senate,” Canadian Chamber of Commerce of the Philippines President Julian Payne said, warning that non-participation puts the country at a disadvantage compared with other RCEP signatories.