QUEZON CITY (PIA) -- The National Economic and Development Authority (NEDA) Board, chaired by President Ferdinand R. Marcos Jr., approved two (2) landmark development measures aimed at reducing poverty incidence and promoting inclusive growth in the Philippines during its 5th Board meeting on Thursday, April 20, 2023.

The Social Protection Floor (SPF), for one, has been approved to institutionalize current programs and improve the government’s current initiatives that cater to the needs of the most vulnerable Filipinos.

SPF refers to a nationally defined set of basic social security guarantees to alleviate poverty vulnerability and social exclusion, guaranteeing the provision of protection to individuals and families in times of need. 

The SPF is comprised of four basic guarantees covering the entire life cycle: Health (including maternity care), children, active age, and older persons. 

The SPF for Health advocates for the complete implementation of Universal Health Care to ensure that all individuals have access to adequate healthcare services.

Meanwhile, SPF for children is aimed at providing access to nutrition, education, care, and any other necessary goods and services. This includes enhancing the Pantawid Pamilyang Pilipino Program (4Ps); the full implementation of feeding programs; ensuring to provide nutritious food during calamities; addressing teenage pregnancy; and providing mental and healthcare support and other services.

Moreover, the SPF for active age includes support for Filipinos who are unable to earn sufficient income including those in the informal economy. The programs include emergency employment; enrollment of all beneficiaries to livelihood programs and social security programs; enhancement of existing employment insurance; social insurance coverage for job orders and contract of service employees in the public sector; promotion of savings mobilization; employee compensation programs; and programs for Overseas Filipino Workers.

The SPF also aims to extend pension programs to senior citizens. Under social assistance, the government will ensure that senior citizens will receive discounts, will have access to lifelong learning opportunities, and will receive integrated health services.

NEDA also confirms that the country’s inflation rate for this year is moving on a downward trajectory notwithstanding the possible effects of El Niño. NEDA Secretary Arsenio Balisacan underscores the timely implementation of SPF will help prepare necessary social protection programs for those who will be affected and reduce the vulnerability of Filipinos to falling into poverty.

“We are actively monitoring the situation and implementing the necessary measures to ensure that by the end of the year, we should be on our target of roughly around 4 percent and at 3.5 percent. So, we are on a downward trajectory already,” NEDA chief Arsenio Balisacan said.

Social protection and human capital development are among the government goals outlined in the Philippine Development Plan for 2023 to 2028 towards achieving deep social and economic change leading to a prosperous, inclusive, and resilient Philippines.

Moreover, the NEDA Board also endorsed for the approval of the President an Executive Order (EO) to implement the Philippines’ tariff commitments under the Regional Comprehensive Economic Partnership (RCEP).

The EO is proposed to be effective on June 2, 2023, which will coincide with the end of the 60-day period after the deposit of the instrument of ratification to the ASEAN Secretary General. It will be the basis of the Bureau of Customs for the issuance of customs administrative order which shall be distributed to all ports to allow the implementation of preferential tariffs on imports from RCEP member countries.

The EO will maintain the current preferential tariffs on about 98.1% of the 1,718 agricultural tariff lines, and 82.7% of the 8,102 industrial tariff lines. Out of the 1,685 agricultural tariff lines retained at current rates. 1,426 tariff lines are maintained at zero while 154 tariff lines will remain in their respective most favored nation (MFN) rates and excluded from any tariff concession.

Meanwhile, agricultural tariffs in 105 lines which are in the sensitive and highly sensitive list shall be generally lower than MFN rates in the 20th year of RCEP but still at par with ASEAN plus one rate.

For the remaining 33 lines, the EO will reduce tariff rates upon entry into force or implement gradual reductions over a period of 15 to 20 years.

Essentially, many of the tariffs will be kept for those already committed under the ASEAN Plus One but the Philippines will gain concessions from countries that are plus one of ASEAN.

RCEP Agreement is a modern, comprehensive, high-quality, and mutually beneficial economic partnership agreement that provides opportunities for market access to trade, services, and investment.

The agreement also establishes clear, stable, and predictable rules on trade and investment in our region which makes it even more convenient and competitive for Philippine businesses and investors to be integrated into the global economy.

DTI in partnership with other governments shall conduct a nationwide educational campaign on how the country can take full advantage of the free trade agreement. This includes the launch of the Export Development Plan on June 9.  Assistance centers will also be established to assist businesses in implementing provisions that will affect their industry. (KSAA – PIA CPSD)