WE—the undersigned representatives of farmers, fishers, workers, civil society organizations and the private sector—reiterate our urgent plea to the Senate to reject, or at the very least defer any decision on, the Regional Comprehensive Economic Partnership (RCEP) trade agreement.
The Senate and the general public have been fed with false promises, bloated projections and misleading claims regarding the benefits of RCEP.
While the country may have gained some concessions which are better than those under existing free trade agreements (FTAs) with RCEP countries, these involve a very small percentage of total agricultural tariff lines and trade value. Moreover, many of the purported gains are insignificant. For instance, the Japanese offer to drop tariffs on chocolates to zero applies to a single and obscure tariff line for “other” chocolates, which we most probably do not export. Likewise, we need to wait 20 years before China’s tariff on our canned pineapples becomes zero, even as the current tariff is already very low at 5 percent.
RCEP proponents have conveniently downplayed, if not deliberately concealed, one crucial caveat about the agreement—that any tariff concession from our trading partners under RCEP will not be exclusive to the Philippines, and will actually be available to all other member-countries. There is therefore no assurance, and only a small chance, that we can take advantage of these trade opportunities inasmuch as other RCEP countries are way ahead of us in terms of competitiveness, efficiency and dependability. Moreover, while RCEP may provide more incentives for foreign investors to come to the Philippines, they can just as easily decide to place their money in other countries where the environment for doing business is more attractive.
There has been a conscious effort to belittle the potential damage of RCEP and other trade agreements to many sectors in our economy, particularly agriculture. Yet, these concerns are real and validated by experience. To cite a few: Almost all our tariffs on fishery, dairy, cacao and tobacco products will drop to zero on the very first year of RCEP. Import duties on high fructose corn syrup and other substitutes to our cane sugar will also be eliminated. Our farmers in the Cordilleras and other areas will face a deluge of cheap vegetables from China. All this, with our local producers left with little or no protection because of stringent RCEP rules on the use of additional tariff safeguards during import surges.
RCEP will actually perpetuate, if not aggravate, the adverse impacts of these threats especially because of the non-implementation of laws and programs that were promised in the past and intended to improve the resiliency and competitiveness of our vulnerable sectors. To make matters worse, our government has gone on an import spree while unilaterally cutting tariff rates for sensitive products like rice and pork (and perhaps soon, corn and sugar), without getting any trade concession in return.
We therefore urge our Senators to be skeptical about the rosy projections regarding the purported benefits from RCEP. These types of calculations are based on unrealistic assumptions and have historically been grossly off the mark. In pushing for Senate ratification of the GATT-Uruguay Round agreement in 1995, proponents promised a $3.4 billion-rise in agricultural exports, P60 billion increase in agricultural gross value added, 500,000 additional jobs, and improved balance of trade in agricultural products. Philippine Statistics Authority data show completely opposite results between 1995 and 2018—$7 billion in agricultural trade deficits from a surplus in 1995, over a million jobs lost, and a halving of agriculture’s contribution to the country’s gross domestic product from over 20 percent to only 10 percent.
The Senate has been warned that “we will miss the [RCEP] bus” if we don’t join now. This is again patently misleading. In the first place, are we sure the bus will not run over us? Where is that bus going, and is that where we want to go? And is the RCEP bus the best vehicle to bring us to our desired destination?
Further, RCEP advocates have conveniently failed to clarify that all our FTAs with other RCEP countries will remain in force even if we stay outside RCEP. The preferential tariffs that are already available to us under the Asean+1 FTAs are not much different from what RCEP can offer us. Our bilateral FTAs with Japan and South Korea, which actually give better terms for our products than RCEP, will also be maintained.
Nor will our competitors within Asean get any tariff concessions under RCEP that are significantly better than what we can avail of under the existing FTAs. Only China, Japan, South Korea, Australia and New Zealand stand to gain much from RCEP because they currently do not have reciprocal FTAs among themselves, unlike Asean countries. While it is possible that they will use RCEP to penetrate our traditional markets, they will do so anyway whether we join RCEP or not. The warning therefore that trade will be diverted away from our country simply because we decide not to join RCEP is baseless.
There are too many unanswered questions, claims that require validation, and preparations that need to be undertaken. Many of our stakeholders and economic sectors have not been properly consulted, are simply unprepared, and are lacking in understanding of RCEP; much less, its impact. The DA and DTI have not presented any game plan or strategy to address the lingering dangers and constraints that have confronted our producers in the past, and will place them in greater peril under RCEP. We stand to lose a lot, but will gain very little, if we join RCEP now.
Under these circumstances, it will be foolhardy for the Senate to endorse the treaty.
On behalf of the organizations and individuals listed below:
Raul Q. Montemayor
National Manager
Federation of Free Farmers
SIGNATORIES:
1) Nicanor Briones, President, Agricultural Sector Alliance of the Philippines, Inc.
2) Noel Salazar, Acting Director, AGRO-ECO Philippines
3) Jon Buan, President, Agro-Planters Association, Pampanga
4) Ernesto Ordonez, Chairman, Alyansa Agrikultura
5) Rafael Mariano, Chairperson, Anakpawis Party-List
6) Eduardo Landayan, President, Aniban ng mga Magsasaka. Mangingisda at Manggagawa sa Agrikultura
7) Rene Cruz, National President, Aniban ng mga Manggagawa sa Agrikultura
8) Cathy Estavillo, Spokesperson, Bantay Bigas
9) Pablito Sandoval, Director, Batangas Integrated Sugar Planters Multi-Purpose Cooperative
10) Cecilia Chavez-Custodio, Chairperson, BUTIL Farmers Party
11) Romeo Royandoyan, Executive Director, Centro Saka, Inc. (Philippine Center for Rural Development Studies)
12) Teodoro C. Mendoza, Science Director, Community Legal Help and Policy Center, Philippines
13) Charles R. Avila, Spokesperson, Confederation of Coconut Farmers Organizations of the Philippines
14) Raymond Montinola, President, Confederation of Sugar Producers Associations, Inc.
15) Jun Cruz, President, Council of the Laity of the Philippines
16) Essex Ramones Lara, Board Chairperson, CREDO Savings and Agrarian Reform Cooperative, Tuguegarao City, Cagayan
17) Mars Mendoza, Executive Director, Fair Trade Alliance
18) Rafael P. Sarucam. National President, Federation of Coconut Farmers and Farm Workers Associations, Inc.
19) Ramon Canastre, Jr., Chairman, Federation of Free Farmers Cooperatives
20) Dioscoro Granada, Secretary-General, Federation of Free Farmers
21) Jose Sonny Matula, President, Federation of Free Workers
22) Joseph Purugganan, Head of Philippine Office, Focus on the Global South
23) Rene Ofreneo, President, Freedom from Debt Coalition
24) Lea Guerrero, Country Director, Greenpeace Philippines
25) Jose Enrique Africa, Executive Director, IBON Foundation.
26) Arze Glipo, Executive Director, Integrated Rural Development Foundation
27) David T. Santos, Chief Executive Officer, Ka Tribu ug ang Lasang Foundation
28) Antony Marzan, Executive Director, Kaisahan tungo sa Kaunlaran ng Kanayunan at Repormang Pansakahan, Inc.
29) Romulo Tapayan, Secretary-General, Kalipunan ng mga Maliliit na Magniniyog ng Pilipinas
30) Edith P. Azores, Chairperson, KAMMPIL AGRICOOP
31) Trinidad Domingo, Chairperson, Katipunan ng Bagong Pilipina
32) Danny Carranza, Secretary General, Kilusan para sa Repormang Agraryo at Katarungang Panlipunan
33) Danilo Ramos, Chairperson, Kilusang Magbubukid ng Pilipinas
34) CJ Castillo, Program Coordinator, Labor Education and Research Network
35) Rommel C. Arnado, President, and Vic Tagupa, Executive Director, League of Organic Agriculture Municipalities and Cities
36) Arnel Toreja, President, Luzon Federation of Sugarcane Planters Associations
37) Cris Paneno, Coordinator, Magsasaka at Siyentipiko para sa Pagunlad ng Pagsasaka
38) Argel Joseph Cabatbat, Congressman, MÀGSASAKA Party-List
39) Rod Bioco, Mindanao Bamboo Council
40) Eduardo Mora, Chairman, National Anti-Poverty Commission – Farmers and Landless Rural Workers Sectoral Council
41) Roland de la Cruz, President, National Congress of Unions in the Sugar Industry of the Philippines
42) Chester Warren Tan, Chairman and President, National Federation of Hog Farmers, Inc.
43) Zenaida Soriano, National Chairperson, National Federation of Peasant Women (AMIHAN)
44) Elvira Quintela, National Coordinator, National Food Coalition
45) Rodolfo M. Capoquian, President, National Trade Union Center-Philippines
46) Marlon Gamboa, President, North Cluster Planters Association of Tarlac
47) Pablo Rosales, Pangulo, Pagkakaisa ng mga Samahan ng Mangingisda
48) Manuel Rosario, Secretary General, Pambansang Katipunan ng mga Samahan sa Kanayunan
49) Herminio Agsaluna. National President, Pambansang Kilusan ng mga Samahang Magsasaka
50) Felix Pascua, Spokesperson, Pambansang Katipunan ng Makabayang Magbubukid
51) Luz M. Bador, President, Pambansang Koalisyon ng Kababaihan sa Kanayunan
52) Eduardo Mora, Chairperson, Pambansang Kaisahan ng mga Magbubukid sa Pilipinas
53) Aurea Miclat-Teves, Executive Director, People’s Development Institute
54) Roger Navarro, President, Philippine Maize Federation
55) Marlon Palomo, Executive Director, Philippine Rural Reconstruction Movement
56) Joji Co, President, Philippine Confederation of Grains Associations
57) Rolando Tambago, President, Pork Producers Federation of the Philippines, Inc.
58) Hazel Tanchuling, Executive Director, Rice Watch Action Network
59) Rosendo So, President and Jayson Cainglet, Executive Director, Samahang Industriya ng Agrikultura
60) Manjet Manalo-Lopez, National President, SANLAKAS
61) Judith C. Ebalor, Chairperson, Save Candelaria Zambales Movement, Inc.
62) Josua Mata, Secretary-General, Sentro ng mga Nagkakaisa at Progresibong Manggagawa
63) Mark Almazan, Chairman, Southern Tagalog for Environmental Development and Protection of Sierra Madre
64) Mario Descallar, President and Jesus Las Marias, Chief – Media Relations, System of Rice Intensification,Pilipinas
65) Dinna Umengan, Executive Director, Tambuyog Development Center
66) Ana Maria Nemenzo, Co-Convenor, Trade Justice Pilipinas
67) Norberto Chingcuanco, Co-Convenor, Tugon Kabuhayan
68) Elias Jose M. Inciong, President, United Broiler Raisers Association
69) Manuel Lamata, President, United Sugar Producers Federation
70) Fe Manapat, Woman Health Philippines
71) Heinzelle Agatep, Board Secretary, Zinundungan Valley Agricultural Cooperative, Lasam, Cagayan
72) Cornelio Garcia, Former President, Ramon Magsaysay State University, Zambales
73) Agnes Bolanos, Agri-Aqua Development Coalition-Mindanao