Ratification of Regional Comprehensive Economic Partnership (RCEP)

On 21 February 2023, the Philippine Senate finally ratified the Regional Comprehensive Economic Partnership (RCEP). Despite various reservations raised by several industries, the chamber voted 20-1 to ratify the agreement; the nation and all branches of the government generally welcomed the decision. 

The RCEP is a free trade agreement among the Asia-Pacific nations of Australia, Brunei, Cambodia, China, Indonesia, Japan, South Korea, Laos, Malaysia, Myanmar, New Zealand, the Philippines, Singapore, Thailand and Vietnam. 

The 15 member countries account for about 30 percent of the world's population (2.2 billion people) and for 30 percent of the global GDP ($29.7 trillion), making it the largest trade bloc in history. 

The RCEP agreement updates the coverage of existing ASEAN free trade agreements (FTAs) and takes into account emerging trade issues such as electronic commerce, competition, intellectual property and government procurement. It will encourage foreign investments in the Philippines and allow for greater participation in the areas of digital services, business process outsourcing industry, financial services, aerospace, shipbuilding, research and development, and many others.