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RCEP: An Analysis of the Extent of Preference Erosion of the Philippines in the Import Markets of China, Japan, and South Korea

The participation of China, Japan, and South Korea in the Regional Comprehensive Economic Partnership (RCEP) is expected to gradually erode the Philippines’ existing trade preferences in each of these nations as tariffs between them diminish over their respective tariff liberalization timelines. Labor-intensive goods, particularly those linked to global value chains, face the highest risk of export decline, notably in China, then in Korea and Japan. To counter potential losses, this Policy Note recommends that the Philippines focus on enhancing export competitiveness. Strategies should involve bolstering trade capabilities, encouraging investments, utilizing benefits from current and future free trade agreements, and emphasizing market access. 


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