RCEP should open Asian shelves wider for Filipino products

Philippine businesses need to make better use of the Regional Comprehensive Economic Partnership (RCEP) to expand the presence of Filipino products in markets across Asia, SM Investments Corp. economist Robert Dan Roces said.

Speaking at the inaugural RCEP Business and Investment Summit in Manila, Roces said the presence of Filipino products on supermarket shelves across participating economies could serve as a practical measure of whether the regional trade agreement is delivering opportunities for Philippine businesses.

Proof of concept

“The proof of concept is how the grocery shelf is stocked. What we have to be able to do is to be present on all the shelves of the participating economies in RCEP,” Roces said.

RCEP brings together the 10 ASEAN economies with Australia, China, Japan, South Korea and New Zealand, representing almost a third of the world’s population and gross domestic product.

The agreement provides preferential market access and common rules of origin to facilitate trade and sourcing among member economies.

Less visible

Roces noted that while Philippine consumers have access to products from neighboring Asian markets, Filipino products remain less visible on supermarket shelves in other RCEP economies.

“What we need to do is shorten the trip and make the outbound journey easier,” Roces said. “Look at what our supermarket buyers see here. There are many Korean, Japanese and Thai products on our shelves today. But if we look for Filipino products in supermarkets in Seoul or Bangkok, they are much harder to find.”

SM Investments president and chief executive officer Frederic DyBuncio said RCEP provides an opening for Filipino suppliers, but businesses must meet the quality, volume and consistency required by larger markets.

“RCEP opens the door, but Filipino products still have to earn their place on the shelf,” DyBuncio said.

Roces said the goal should go beyond increasing imports into the Philippines and focus on enabling more Philippine products to reach consumers abroad.

“The real measure is not simply how many products come into the Philippines,” Roces said. “It is whether more Philippine products can make the journey out.”