The National Economic and Development Authority board, chaired by President Ferdinand Marcos Jr., has approved two measures aimed at achieving “deep social and economic change” in the Philippines. The first is an executive order (EO) operationalizing Regional Comprehensive Economic Partnership (RCEP) tariff commitments. The EO is expected to take effect on June 2, 2023, coinciding with the end of a 60-day period after the submission of the Philippines’ RCEP ratification. The second measure is a “Social Protection Floor” to ensure access to healthcare and social services, covering health, children, active age, and older persons.
The RCEP is a free trade agreement among the 10 member states of the Association of Southeast Asian Nations (ASEAN) and Australia, China, Japan, New Zealand, and South Korea. The EO aims to maintain current preferential tariffs on about 98.1% of agricultural tariff lines and 82.7% of industrial tariff lines. It will also reduce tariff rates upon entry into force or implement gradual reduction over a period of 15 to 20 years for the remaining 33 lines.
The Social Protection Floor (SPF) aims to provide basic social security guarantees to prevent or alleviate poverty, vulnerability, and social exclusion. It covers healthcare, nutrition, education, care, mental health support, social assistance, social pension programs, and learning opportunities, among others. The government plans to enhance the Pantawid Pamilyang Pilipino Program, lengthen the number of feeding program days for children, address teenage pregnancy, and provide support to Filipinos working abroad.
Socioeconomic Planning Secretary Arsenio Balisacan said that the approval of the government’s Social Protection Floor is a significant progress in the country’s development history and a manifestation of the government’s commitment to significantly reduce poverty incidence and promote inclusive growth.
