Macroeconomic Policy News

Deal seen boosting TPP bid

THE PHILIPPINES’ BID for inclusion in a US-backed Asia-Pacific free trade deal has been given a boost following both countries’ signing of an agreement primarily aimed at improving bilateral commerce.

US Trade Representative Ron Kirk and Trade Secretary Gregory L. Domingo inked a customs administration and trade facilitation protocol at the sidelines of the just-concluded Asia Pacific Economic Cooperation (APEC) summit in Hawaii, Mr. Kirk’s office said in a statement.

Mr. Domingo, the Office of the US Trade Representative (USTR) said, was also briefed by Mr. Kirk on the Trans-Pacific Partnership (TPP) initiative that Washington is pushing along with eight other economies.

“Conclusion of this customs and trade facilitation agreement can be a building block toward Philippine participation in the TPP; it includes high standard commitments similar to those being negotiated in the customs chapter of the TPP agreement,” the USTR said.

It said both trade officials were also looking forward to the launch of the US-Philippines Partnership for Growth, described as an “initiative aimed at supporting broad-based economic growth … and policy reform in areas that would better position the Philippines to join the TPP in the future”, when US Secretary of State Hillary Clinton visits today.

The TPP — currently being negotiated by Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore, Vietnam, and the United States — is seen as Washington’s bid to remain firmly involved in the region amid China’s growing economic clout.

The scheme received a boost when Japan last week said it was interested in joining the talks. Mexico and Canada followed suit on Sunday.

The Philippines has similarly expressed interest in joining TPP negotiations, although some officials have raised concerns over standards for inclusion.

The Trade department had no official word yesterday about Philippine involvement in TPP discussions or the deal signed by Messrs. Kirk and Domingo.

The commitment to simplified procedures and transparency, among others, came as the USTR released outlines of the TPP legal text over the weekend.

Mr. Kirk, in the statement, said: “The Philippines is a vital market for US exporters seeking to sell Made-in-America products overseas and support jobs here at home. This agreement is a meaningful step in our efforts to elevate the US-Philippine trade relationship.”

“The commitments in this Protocol will provide transparency and consistency for our exporters, including small and medium-sized businesses. We hope this step will expand trade and boost job creation in both our countries,” he added.

The statement noted that trade in goods and services between the two economies had reached $20 billion last year.

The USTR, in its TPP report, said efforts were being done to ensure that developing economies interested in joining would be given reasonable time and assistance to adjust to the free trade deal’s full requirements.

“[The TPP will be] a living agreement to enable the updating of the agreement as appropriate to address trade issues that emerge in the future as well as new issues that arise with the expansion of the agreement to include new countries,” it said.
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Source: Business World, Nov. 15, 2011
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