THE GOVERNMENT is open to having bilateral trade agreements with other countries but it wants to prioritize multilateral agreements first like the Trans Pacific Partnership (TPP), a senior Trade official said.
“Free trade agreements with other countries are an option but that depends on our capacity, timing and national interest. For now our first position is for multilateral agreements,” said Trade Undersecretary Adrian S. Cristobal in an interview with reporters late Monday.
He added the country already has begun the scoping exercises for a potential European Union (EU)-Philippines free trade agreement.
Studies on the impact a potential of an EU-Philippines free trade agreement were presented on Sept. 19.
The studies showed the tuna fishing sector will gain the most from a trade agreement between the two parties.
The government is also interested in joining the TPP which was first formally announced on Sept. 23 last year when the Philippines and the United States discussed initiative to join the agreement.
“The TPP is a high priority since it’s a big market. There have been a lot of information exchanges with TPP members who are receptive,” said Mr. Cristobal.
Asked about a potential study for the TPP he said: “Yes, we’re going that way but there is nothing concrete yet.””The TPP is a very ambitious trade agreement and the option to enter it is always open,” Mr. Cristobal said.
The Trade department said on Aug. 27 that it is “more serious” in its intent to join the TPP especially since it will be welcoming two new members.
The TPP is a free trade deal signed between the United States, Brunei Darussalam, Chile, New Zealand and Singapore in 2005. Other countries that have since joined the TPP are Australia, Malaysia, Peru and Vietnam.
Mexico and Canada have entered formal negotiations to join the partnership.
Despite its interest in crafting more free trade agreements, exporters are urging the government not to delay any further.
“We are very much behind in bilateral agreements, other countries have as many as seven and we only have a few like the JPEPA (Japan-Philippines Economic Partnership Agreement) and the ASEAN (Association of Southeast Asian Nations). It’s high time that we start on TPP preparations or we will behind on it too,” said Philippine Exporters Confederation, Inc. President Sergio R. Ortiz- Luis, Jr. in a telephone interview with BusinessWorld.
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Source: Emilia Narni J. David, BusinessWorld. (25 September 2012)
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