THE Regional Comprehensive Economic Partnership (RCEP) agreement would not have any adverse impact on imported energy goods such as oil and gas, the Department of Energy (DOE) said Tuesday.
DOE Secretary Raphael Lotilla said the RCEP agreement would, in fact, create a competitive investment environment in the region for the energy sector. It is expected to provide opportunities for expanded market access and establish clear, stable, and predictable rules on trade in energy goods and services, including investments among participating countries.
Lotilla added that energy-related trade in services would further improve the business climate of the energy sector in the country, supporting the agency’s aggressive push for the exploration, development, and utilization of the country’s indigenous energy resources as it transitions to a low-carbon future.
Even before the country acceded to RCEP, the ASEAN and ASEAN+1 free trade partners already enjoyed zero-percent tariff rates on energy goods covered under Chapter 27 of the Tariff Book published by the Tariff Commission (TC). The DOE said the zero-percent tariff rates also apply to liquefied natural gas (LNG) given that the Philippines considers this as a transition fuel for power plants supporting variable renewable energy and expected to come into play this year in the country.
“In evaluating international agreements affecting the Philippine energy sector, the DOE considers investments, energy security, and access to technologies,” the agency said.
The secretary stressed that the energy sector is a capital-intensive undertaking where Filipino capital may not be sufficient.
Second, developed countries of RCEP partner countries have advanced technological capabilities. The DOE said services by these countries in the Philippines could enhance technology transfer to local counterpart companies and DOE.
Third, the DOE stressed that international energy cooperation is vital in pursuing collaborative activities with other countries to achieve greater energy self-sufficiency, security, and sustainability.
These efforts, the DOE pointed out, are geared towards ensuring the country has enough energy supply.
In the latest Philippine Energy Plan (PEP) 2020-2040, the DOE works steadily across borders, consistent with its thrust of fostering stronger international relations and partnerships meant to elevate the country’s energy programs and projects to attract foreign investments.