Connect with us

Hi, what are you looking for?

Economy

RCEP seen highlighting PHL manufacturing weakness

A RECENTLY SIGNED 15-country trade deal may not significantly benefit the Philippine economy and instead expose its lack of competitiveness in manufacturing, a senior equities research executive for Regis Partners said.

“I think it will continue to highlight that we’re a lot less competitive in terms of manufacturing than our neighbors,” Regis Partners, Inc. Chief Strategist Rafael P. Garchitorena said, in response to a question at a German-Philippine Chamber of Commerce and Industry online event last week.

“If anything, it might make import prices lower which could tame inflation, but it will just highlight again the gap between our manufacturing competitiveness against the rest of the region.”

The Philippines recently signed on to the Regional Comprehensive Economic Partnership (RCEP), which the Trade department aims to ratify this year. The trade pact includes China, Australia, New Zealand, Japan, South Korea and all 10 member-countries of the Association of Southeast Asian Nations (ASEAN). 

The Trade department has been promoting the deal as advantageous for export market access, especially for garments, automotive parts, and agricultural products such as canned food and preserved fruit.

Mr. Garchitorena called the RCEP a “small net negative for the country.”

He said that Philippine participation in the trade bloc and the link with China is good for the country, but adds that it is difficult to say how it would translate to economic activity.

“The reality is (China is) now the growth engine of the world. Anything that gets us in that orbit is more likely better than none.”

The elements that reduce the competitiveness of Philippine manufacturing like the high costs of power or logistics challenges across the archipelago, he added, have nothing to do with open borders.

“RCEP is good. I don’t know if necessarily it will be a huge positive for the Philippines,” Mr. Garchitorena said.

RCEP becomes effective 60 days after six ASEAN member states and three other signatory states submit their instruments of ratification.

The Trade department is also seeking participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, a deal signed by 11 countries in 2018. — Jenina P. Ibañez

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Investing

A Cotswold-based authentic Italian food business set up by a couple who initially dreamed of sharing the classic flavours of Italy with the local...

Economy

Filinvest Land, Inc. (FLI), one of the country’s largest real estate developers, reported P4.31 billion in revenues and other income for the first quarter...

Investing

Tesco is to hand pig farmers £6.6m in additional support, taking the total to £10m, after warnings that a slew of producers could go...

Investing

Elon Musk has suggested that he could seek to pay a lower price for Twitter, as the social media company’s would-be owner expressed further...

Investing

Tens of thousands of apprenticeships could be created and hundreds of millions of pounds saved if the flawed apprenticeships levy were reformed, according to...

Economy

The man accused of killing a doctor and wounding five other people in a shooting at a Taiwanese-American church banquet in California methodically planned the attack because he was upset over Chinese-Taiwanese tensions,...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.