THE implementation of the Regional Comprehensive Economic Partnership (RCEP) Agreement early this year is seen to boost the country’s e-commerce and business process management (BPM) sectors.
According to Trade Assistant Secretary Allan Gepty, RCEP provides a comprehensive chapter on e-commerce intended to create a conducive environment for electronic transactions, promote cross-border trade online, and foster cooperation and capacity building in the region.
RCEP is a mega trade agreement signed by 10 Association of Southeast Asian Nations member states Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam, and its five free trade agreements partners, namely China, Japan, South Korea, Australia and New Zealand, making it easier for products and services of each of these countries to be available across this region.
The negotiations are focused on trade in goods and services, investment, intellectual property, dispute settlement, e-commerce, small and medium enterprises and economic cooperation.
Collectively covering about one-third of the world’s population with 30 percent of the global gross domestic product, the RCEP will increase the member economies’ incomes by 0.6 percent by 2030, adding US$245 billion annually to regional income and 2.8 million jobs to regional employment, according to an Asian Development Bank’s study.
RCEP is also the first free trade agreement of the Philippines with comprehensive provisions on e-Commerce.
From a business perspective, Gepty said the chapter ensures that covered businesses will not be required to transfer or relocate computing facilities as a pre-condition for establishing a presence in the region and that the cross-border transfer of information by electronic means must also be respected and will continue to be unhampered to facilitate the conduct of business.
“While this rule is not absolute as it is subject to certain exceptions such as essential security interests and legitimate public policy objectives, having this kind of stability will encourage more investments in the country particularly in the BPM sector whose transactions are mostly cross border and require an enabling environment to provide digital services. This also means more employment opportunities for Filipinos,” said Gepty.
From a consumer perspective, RCEP recognizes the importance of adopting and maintaining transparent and effective consumer protection measures for electronic commerce as well as other measures conducive to the development of consumer confidence.
RCEP also requires parties to adopt or maintain laws or regulations to ensure the protection of consumers against fraudulent and misleading practices that cause harm or potential harm to such consumers. The chapter also requires parties to ensure the protection of personal information of e-commerce users including through online consumer protection. It also has a solid chapter on Intellectual Property that provides, among others, a balanced and inclusive approach to the protection and enforcement of intellectual property rights.
“That is why it is imperative for the country to be part of this mega trade deal if we want to strengthen our niche in the BPO sector and build more opportunities in the digital economy,” Gepty emphasized.
Services is one of the strongest and fastest-growing sectors of the Philippine economy. As of the third quarter of 2021, the sector accounted for 63.9 percent of the country’s gross domestic product (GDP), maintaining its post as the top contributor to GDP relative to the agriculture and manufacturing sector. Professional and business services, where the BPM sector is classified, increased by 11.5 percent compared to the same period in 2020.