THE Philippines is leveraging the Regional Comprehensive Economic Partnership (RCEP) in pushing for the reduction of tariffs and nontariff measures (NTMs) within the participating countries to boost the country’s farm exports.
Agriculture Undersecretary Segfredo R. Serrano told the BusinessMirror that the Philippines will push for the reduction of tariffs and NTMs that prejudice the country’s farm exports.
However, Serrano added that the Philippines will keep its own tariff lines and NTMs to protect the country’s sensitive farm products from unfair global trade.
“It is natural for us that we will seek tariff cuts on our offensive interests, but we will reject tariff cuts on the products that we are defensive,” he said.
“The same applies to nontariff measures. Why would we reduce the nontariff measures that protect us? But we will argue that they should remove their non-tariff measures that prejudice our exports,” he added.
The agriculture official explained that the forging of RCEP will benefit the country’s farm sector in terms of trade as the Philippines seeks to source cheaper imports of raw materials while increasing its export markets.
“[RCEP] would benefit us in terms of trade. More market penetration [for exports] and maybe cheaper raw materials for our industries,” Serrano said.
“You must look at the whole value chain, the whole macroeconomy,” Serrano added. “It is also important for us that the raw materials sourced by our industries are cheap, so that our consumers enjoy cheaper products and we are able to export competitive products.”
Serrano said the RCEP should not conclude in such a way that it will be detrimental to the interests of Filipino farmers.
“At the same time, it is important for us to see that the agreement does not unnecessarily prejudice our domestic producers,” he said.
Dr. Rolando T. Dy, executive director of the University of Asia and the Pacific’s Center for Food and Agri Business, told the BusinessMirror that the Philippines should push for the review of some of the nontariff barriers (NTBs) that affect the country’s farm exports.
“Australia must revisit its NTBs on bananas, mango and pineapples,” he said.
“Japan must reduce tariffs on Philippine bananas. It offered duty-free access already to several countries, albeit at lower quantities,” he added.
Cabinet officials of the Duterte administration have been pressing Canberra to allow the entry of bananas from Manila. They have been also vocal in pushing for the reduction of tariffs slapped by Tokyo on the country’s banana exports.
However, Dy noted that the Philippine farm sector must focus on expanding and diversifying its productive capacity in order to capitalize the expansion of markets under RCEP. He added that the country should also protect its farm commodities sensitive to global trade.
“The threat to rice is already Asean exporters plus India. Tariffs of 35 percent to 40 percent will protect local farmers provided [the Philippines] reduces costs through mechanization,” he added.
Roehlano M. Briones, Philippine Institute for Development Studies senior research fellow, echoed Serrano and Dy’s remarks adding that the Philippines should in fact push for a zero tariff on our exports and a more predictable NTMs among participating countries.
However, Briones noted that this would only be possible if the Philippines is willing to give up its own protective measures.
“On the other hand, we should also bring down our trade barriers,” Briones told the BusinessMirror. “The tipping point would be reciprocity.”
“If we want them to bring down their trade barriers, then for sure they will ask us to do the same,” he added. “So we must be ready in reducing our nontariff measures.”