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Bilyonaryo

Don’t just import: SM Investments wants businesses to tap RCEP to sell more Pinoy goods abroad

We see Korean, Japanese and Thai products everywhere. So where are the Pinoy goods abroad? SM economist Robert Dan Roces says RCEP should help Filipino businesses turn regional access into actual shelf space across Asia.

Context & Analysis

For Philippine firms, the Regional Comprehensive Economic Partnership is best understood as a set of operational tools rather than a slogan about openness. It can make cross-border trade easier by aligning customs processes, clarifying rules of origin, and reducing frictions in services and investment among member states. The harder task is translating that institutional framework into customer demand, distribution relationships, and repeat orders.

For many local businesses, the bottleneck is not access but readiness. Exporting to Asia may require product reformulation, labeling in multiple languages, packaging suited to longer transit, and compliance with food safety or industrial standards that differ by country. It also demands reliable logistics, working capital, and distribution partners who understand shelf placement, retail negotiations, and after-sales support. Small firms often have strong products but limited capacity to manage documentation, quality control, and customer service across borders. Larger exporters may benefit more immediately because they can spread compliance costs over bigger volumes, while micro and small businesses may need stronger government programs, trade finance, and digital marketplaces to participate meaningfully.

This matters for the broader economy because export diversification can reduce dependence on a narrow set of destination markets and help build regional brand recognition. If Filipino goods appear consistently in stores across ASEAN and East Asia, they can create feedback loops: foreign buyers learn what local producers do well, domestic suppliers improve quality to meet export demands, and consumers at home may benefit from more competitive pricing and better products. For investors, the story is less about a single policy announcement and more about whether trade facilitation becomes part of everyday business operations.

What to watch next is implementation. Look for stronger coordination among agencies that handle standards, customs, and export promotion; clearer guidance on rules of origin so firms can prove their goods qualify for preferential treatment; and private-sector initiatives that connect producers with distributors, retailers, and e-commerce platforms in member countries. The signal will not be a statement about opportunity, but whether more Philippine-made products are available outside the Philippines, consistently and at scale.

Analysis by IJE Software — original commentary on the story above.

This is an excerpt. Read the full article at the original source:

Source: bilyonaryo.com

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