THE US has agreed to begin initial talks with the Philippines for a free trade agreement (FTA), after US President Donald J. Trump’s visit to the Philippines for the 31st Association of Southeast Asian Nations summit and other related meetings which ended last Tuesday.
In a joint statement released by the US Office of the Press Secretary on Tuesday, Mr. Trump and President Rodrigo R. Duterte have decided to “further deepen the extensive United States and Philippine economic relationship.”
“The United States welcomes the Philippines’ interest in a bilateral free trade agreement and both sides agreed to discuss the matter further through the United States-Philippines Trade and Investment Framework Agreement (TIFA),” the statement read.
The trade agreement, which will also extend to private sector cooperation, will also focus on agricultural products, intellectual property, and labor.
“To this end, both sides will explore strengthening dialogues for innovation and sharing of best practices in technology to optimize the position of the Philippines as a preferred destination for American investments in the Asia-Pacific region,” the statement added.
In a briefing Tuesday, Department of Trade and Industry Undersecretary Ceferino S. Rodolfo said that a Philippine delegation will be heading to US by the end of the month to start the talks for the strategic dialogue and the TIFA.
Mr. Rodolfo added that the Philippines started focusing on sealing a bilateral FTA with US after Mr. Trump’s sudden pulling out from the Trans-Pacific Partnership trade deal in January this year.
According to the office of the United States Trade Representative, the TIFA serves as a platform between US and another country concerning trade and investment issues.
Aside from the TIFA, the Philippines has been a beneficiary of the US-granted generalized system of preferences (GSP) with grants select local products entry to the US with little to no tariffs, a program which gives aid to poor and developing countries.
“We enjoy a little trade surplus and we acknowledged US support via GSP and the recent inclusion of travel goods. And that we wish to elevate the trade arrangements to start exploring FTA with the US. President Trump welcomed the suggestion and said they will consider exploratory talks on FTA,” Trade Secretary Ramon M. Lopez said in a text message to reporters last Monday.
“If you look at it, 75% of our products already enter the US duty-free. The only remaining products [that are not included] are garments and textiles, wristwatches, carrageenan and seaweed, and the entire agricultural sector,” Mr. Rodolfo also said.
“Market access is what we’re looking for here and the possibility of investments also so that we can have a framework that they invest here and make the Philippines as their hub in the region,” he added.
According to the Philippine Statistics Authority, the US was the Philippines’ top export destination with a 14.3% share of total exports in September, and the fourth-leading source of imports at 7.5%. — Anna Gabriela A. Mogato
