The Philippines has submitted a ratification document to comply with the Regional Comprehensive Economic Partnership (RCEP) agreement to the ASEAN Secretariat, becoming the last member country to ratify the RCEP agreement following the other 14 countries, namely Brunei Darussalam, Cambodia, Lao PDR, Singapore, Thailand, Vietnam, Australia, China, Japan, New Zealand, Myanmar, South Korea, and Malaysia.
The RCEP agreement became fully enforceable in the Philippines on June 2, 2023, completing the ratification process among all 15 founding RCEP members. This ratification will lead the Philippines to eliminate tariffs on certain goods including fishery products, plastics, glass, and automotive parts, which were not previously part of the ASEAN-China, ASEAN-Japan, ASEAN-South Korea, and ASEAN-Australia-New Zealand Free Trade Agreements. This presents an opportunity for Thai entrepreneurs to choose raw materials from the Philippines for production to export to other non-ASEAN RCEP members.
Moreover, Thai entrepreneurs can import raw materials from Japan, South Korea, China, Australia, and New Zealand to produce goods for export to the Philippines, which will benefit from tariff reductions or exemptions under the RCEP agreement. This is an opportunity for Thai entrepreneurs to expand their production and distribution networks within the RCEP region.
The Philippines is Thailand's fifth largest trading partner in the ASEAN market. In 2022, bilateral trade between the two countries was valued at 11.2 billion US dollars, with Thailand's exports to the Philippines worth nearly 7.4 billion, and imports from the Philippines valued at 3.8 billion dollars.
Major Thai exports include automobiles, parts and components, electrical circuit boards, and plastic beads, while key imports include computer devices, parts and components, electrical circuit boards, other mineral ores, metal scraps and products, and automotive parts and components.
Thai trade with RCEP members was valued at nearly 327.3 billion dollars, accounting for 55.45% of Thailand's total global trade. Thailand has exported under the RCEP agreement worth 994.77 million dollars. The top five products exported under the RCEP agreement are lubricating oil, canned tuna, vermicelli, fresh durian, and lenses for cameras and projectors. The imports under the RCEP agreement were valued at 479.06 million dollars. The top five imported products are wood particle boards, long synthetic fibers, fresh or dried grapes, polyamide in primary forms, and sodium hydroxide.
Source: Department of Trade Negotiations, Ministry of Commerce
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