18 of the 20 chapters of the proposed mega trade deal have been approved as of the trade ministers’ meeting on 1 November.

Presidential spokesman Salvador Panelo says President Rodrigo Duterte has stamped his unique leadership style at the ASEAN Summit in Bangkok. MALACAÑANG PHOTO

Asian nations are on the cusp of the creation of a free trade bloc bigger than the European Union after “conclusive” talks were reached yesterday at the Association of Southeast Asian Nations (ASEAN) Summit.

The prospects of reaching an agreement on the 16-nation Regional Comprehensive Economic Partnership (RCEP), which is backed by China, were put into doubt by last minute demands from India ahead of the holding of the meetings in Bangkok.

This was, however, resolved as “the negotiation (on Saturday) night was conclusive,” Thailand Commerce Minister Jurin Laksanawisit said.

Department of Trade and Industry Secretary Ramon Lopez said 18 of the 20 chapters of the proposed mega trade deal have been approved as of the trade ministers’ meeting on 1 November.

The agreement, backed by China, would reduce tariffs for a third of the global economy in a win for free trade after President Donald Trump pulled the United States out of the Trans-Pacific Partnership and implemented a host of protectionist measures.

Laksanawisit indicated all text-based rules and cooperation registered “substantial progress” and are “almost concluded.”

“We can report a very positive development,” he said.

RCEP is a free trade agreement between the 10 ASEAN member-countries and six trading partners namely China, Japan, South Korea, India, Australia and New Zealand.

Once in place, the block will account for one-third of the world’s output as it covers some 3.5 billion people.

Lopez also noted that one country, which he did not name but based on reports was India, has not fully committed to the deal, and still has issues on the market access rules.

The country has basically agreed to join the deal, but it just needs “some kind of confirmation before they can totally agree to the conclusion of all these 20 chapters.”

He said the trade deal is expected to be signed in Vietnam, next year’s ASEAN host country, in February 2020, with the next three to four-month period to be used for the finishing touches.

Pending the issues raised by the remaining country, Lopez said officials from the 15 other countries expect that all participants will be part of the free trade block.

“The mindset right now is for everyone to be in… We believe that even that one country is working doubly so that they can assess and address all the issues (that are) pending,” he added.

“I think there’s a great probability that everyone will be in,” he said.

The trade chief said Filipino farmers and manufacturers need not worry about the impact of the free trade deal since safeguard measures will be put in place.

For several agricultural products like corn, rice and sugar, the Trade chief can maintain their competitiveness because they remain protected.

He explained that competitiveness of Philippine products “will have to come from (the) internal (market).”

“The government needs to support the competitiveness of our products,” he said.

Malacañang said the ASEAN is close to fleshing out the rules in maintaining the South China Sea as a sea of peace, stability, and prosperity amid disputes or the so-called Code of Conduct (CoC).

Presidential spokesman and Chief Legal Counsel Salvador Panelo said all ASEAN countries have vowed to unite and fight common enemies even as he stressed the need for members to work collectively as a regional bloc.

“All of them want to unite against common enemies and they are one in the need to cooperate on the same concern. The common enemy, of course, is terrorism and then the problem in the South China Sea,” Panelo said.

“From what I observed, they are very concerned on what is happening in the South China Sea. That is why all countries have asked everyone to observe self-restraint to avoid any activity that could lead to more friction and even armed hostilities between and among countries in the region,” he added.

Panelo added the year 2020 will be an auspicious year for the ASEAN as two of the regional bloc’s member states, Indonesia and Vietnam, are set to occupy seats at the United Nations Security Council.