THE Regional Comprehensive Economic Partnership (RCEP) is likely to have greater impact on incomes than the Trans-Pacific Partnership (TPP), the Asian Development Bank (ADB) said.
In a study, the ADB found that RCEP implementation adds $263 billion to global income, based on 2030 baseline projections, Cyn-Young Park, ADB director for Regional Cooperation and Integration, Economic Research and Regional Cooperation Department said in a webinar on Thursday.
The RCEP is a trade deal involving Australia, China, Japan, South Korea, New Zealand and the 10 members of the Association of Southeast Asian Nations (ASEAN). It has been in force in 11 countries since Jan. 1.
Meanwhile, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is expected to add $188 billion.
“The income gains (for RCEP) are somewhat greater than those from the CPTPP,” she said.
The CPTPP is a trade deal among Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.
“In terms of export effects, the patterns are quite similar to income effects,” Ms. Park said.
RCEP adds $496 billion to world exports, while the CPTPP adds $312 billion.
President Rodrigo R. Duterte ratified RCEP on Sept. 2, 2021. The Senate failed to give its concurrence before it adjourned on Feb. 3 for the election break.
Groups such as the Federation of Free Farmers have said that safeguards for the agriculture sector need to be in place before the Philippines signs on to the deal.
Trade Assistant Secretary Allan B. Gepty has said that delayed participation in the RCEP will send the “wrong signal” to investors and put Philippine businesses at a disadvantage in the region. — Jenina P. Ibañez