THE PHILIPPINES and the Czech Republic signed an agreement to increase trade and investment between the two countries, as Manila seeks to shift trade relations to non-traditional trading partners, the Department of Trade and Industry said in a statement.
Trade Secretary Ramon M. Lopez and Czech Ambassador to the Philippines Jaroslav Olsa, Jr. signed on July 31 the economic cooperation agreement, setting the stage for further talks on possible areas of partnership.
“What we are having here is a milestone between our two countries. The strengths and resources complementarities have long been untapped. It is our desire to be with alternative markets and forge new partnership,” Mr. Lopez was quoted in the statement as saying.
He cited the potential of both countries to tie up in technology-oriented industries, automotive and aerospace parts, electronics, agriculture, energy, transportation, and tourism.
“Tourism is the beginning of trade, I say that all the time, because when people come and see how beautiful and interesting things are, they return and say why don’t you come and do business,” Mr. Olsa said.
Mr. Lopez also encouraged the Czech Republic to explore possible cooperation in the development of micro, small, and medium enterprises (MSMEs). Other areas of cooperation may include food and beverage, defense and security solutions.
At the meeting, it was noted that the Philippines can tap the Czech Republic’s strengths in industry to implement Manila’s Manufacturing Resurgence Program (MRP) to help address the existing gaps in the implementation of various industry roadmaps.
In the area of trade, the Philippines can boost exports of mid-priced apparel to the Czech Republic amid rising demand. There is also potential for frozen marine products, dried fruit, and vegetables — all eligible under the European Union Generalized Scheme of Preferences Plus (EU GSP+) that allows tariff-free entry of goods.
Opportunities for investment include information technology-business processing management, knowledge process outsourcing, processed and specialty food, energy, design-driven products and aerospace/aeronautics.
While the Philippines is pursuing a free trade agreement (FTA) with the EU, the country’s engagement with the Czech Republic aligns with the government’s strategy of rebalancing trade relations with non-traditional trade partners, anchored on an independent foreign policy.
In 2016, Czech Republic was the Philippines’ 31st-largest trading partner out of 226; 28th-largest export market out of 213; and 33rd-largest source of imports out of 207, with total bilateral trade amounting to $ 283 million. — Krista Angela M. Montealegre
