PH to lose papaya and garment exports if RCEP is not ratified

Published 2023년 2월 7일

Tridge summary

The Philippines faces a potential loss in its papaya export market to Malaysia due to its delay in joining the Regional Comprehensive Economic Partnership (RCEP), a mega free trade deal that aims to integrate Asia. The RCEP is expected to eliminate a 24% tariff on papaya exports over a ten-year period, making Malaysian papaya exports cheaper. Failure to join RCEP could result in a 24% duty on Philippine papaya exports to other RCEP countries like Korea and Japan. Additionally, the Philippines could face economic disadvantages in other sectors if it does not participate in RCEP, including reduced competitiveness in the global value chain, higher costs for intermediate goods, and potential diversion of trade and investments to countries within the regional bloc. The DTI secretary emphasized the importance of the Philippines' participation, citing opportunities for economic growth, improved market access, and a conducive business environment.

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Original content

The Philippines, the second largest papaya exporter in ASEAN, is seen to lose its papaya exports market to Malaysia if the country fails to join the Regional Comprehensive Economic Partnership (RCEP), which will abolish the 24 percent tariff on the exports of this tropical fruit. During the RCEP Senate hearing Tuesday, Feb. 7 chaired by Senator Loren Legarda, Trade and Industry Assistant Secretary Allan B. Gepty cited papaya as among the country’s agricultural produce that will be disadvantaged by not participating in RCEP. The mega free trade deal phases out the 24 percent papaya tariff over a ten-year period or at 2.4 percent annual reduction, he said. At present, the Philippines ranked second largest papaya exporter in ASEAN, the first being Malaysia. Should the Philippines cannot participate in RCEP, Gepty explained that the country’s papaya exports would be slapped with 24 percent duty. This means, the Philippines’ papaya export is more expensive than the papaya exports of ...

Source: Mb