RCEP seen unlocking services exports
PARTICIPATION in the Regional Comprehensive Economic Partnership (RCEP) will further enhance opportunities in the services trade and support overall economic growth, according to a research paper published by the Philippine Institute for Development Studies (PIDS).
“Despite being a marginal trading arrangement, RCEP can provide additional opportunities for Filipinos to generate income by providing business and professional services to both ASEAN member states and ASEAN free trade agreement partners in RCEP,” according to the “Harnessing the Opportunities in Services Trade under RCEP: Perspectives from the Philippines” research paper.
The paper, written by John Paolo R. Rivera and Tereso S. Tullao, Jr., said increased demand for services in the post-pandemic global economy provides “an opportunity for the Philippines to drive its economic recovery, growth, and development.”
“The Philippines can expand its contributions to trade in services while supporting its own economy through enhanced linkages and partnerships, comparable workforce skills, amendments to laws hampering liberalization — all of which play a role in improving the business environment in the country,” PIDS said.
“Thus, the expected implementation of RCEP can complement the Philippines’ initiatives toward economic recovery through an avenue to transform itself as one of the region’s hubs for manufacturing, innovation, research and development, and as a center for training and education,” it added.
RCEP came into force in June. Other RCEP members are the nine other ASEAN states, Australia, China, Japan, South Korea, and New Zealand.
“The opportunities RCEP offers can only be maximized by enhancing the Philippines’ strengths in competitiveness, language proficiency, cultural adaptability, human capital, and government participation,” the paper said.
The Philippines can attract more investors and enterprises to do business in the country through RCEP, it said.
“This can eventually develop human capital, infrastructure, tourism, and other industries, enhancing domestic productivity in the long run,” it said.
“While liberalizing the economy will pose competition with domestic enterprises and infant industries, protection can still be accorded. Liberalization can be considered for industries where the Philippines has inadequacies, such as utilities, telecommunications, construction, and infrastructure. These areas have been the country’s key constraints that impede economic takeoff,” it added.
The paper said that the Philippines can also take advantage of trading opportunities such as business services in China.
“More specifically, professional organizations in accounting and auditing (e.g., the Philippine Institute for Certified Public Accountants) may directly benefit from this opportunity. Filipino and Filipino-Chinese certified public accountants (CPAs) proficient in Mandarin are deemed viable candidates, as outlined by the RCEP commitments,” it said.
“However, it must be noted that there are market access and national treatment limitations… these can be considered threats to the Philippines, as Filipino and Filipino-Chinese CPAs proficient in Mandarin need to hurdle China’s CPA examination,” it added. — Luisa Maria Jacinta C. Jocson