THE Trade department said it might be possible for bilateral free trade talks with the United States to begin later this year, citing support for a deal from some US lobby groups.
“There may be a chance in the second half,” Trade Secretary Ramon M. Lopez told BusinessWorld on Thursday in Makati City.
“There are American groups that could help. Of course their Congress is independent so we can’t say,” he added.
In his opening statement at the US Senate Finance Committee delivered on March 12, US Trade Representative Robert E. Lighthizer noted ongoing trade negotiations with Japan, Europe, the UK and “several other countries.”
The Philippines and the US finally resolved last year a number of longstanding issues in their Trade and Investment Framework Agreement (TIFA).
A TIFA serves as a framework outlining key issues as a first step toward a free trade agreement.
The particular issues both countries settled were related to customs valuation, intellectual property rights, market access for Philippine agricultural products in the US, and automotive safety standards.
The Philippines noted progress in market access concerns for its mango, young green coconut, and carrageenan products.
Both countries also agreed to work on the improvement of cold chain facilities in the Philippines “to ensure observation of international guidelines and codes of practice for food hygiene adopted by the Codex Alimentarius Commission.”
The US also welcomed the Philippines’ intent to continue protecting geographical indications — labels indicating country of origin — by means of respecting prior trademark rights and not prohibiting the use of common names.
In the vehicle segment, both governments agreed to draw up a US work program in the context of the ASEAN-US TIFA on automotive standards issues.
The Philippines and the US also moved forward from technical and policy dialogues on the National Retail Payments System and other measures related to electronic payment services, including domestic retail debit and credit electronic payment transactions.
The Philippines has long been seeking a bilateral trade agreement with the US.
The Philippines currently avails of the US Generalized System of Preferences program which covers 5,057 products or some 47.7% of the 10,600 total US tariff lines. Of these, about 3,500 are open to developing nations.
The Philippines estimates that roughly $1.5 billion worth of its goods are shipped to the US duty free every year.
Bilateral trade totaled $27 billion in 2016, of which merchandise goods accounted for $18 billion and services, close to $9 billion. — Janina C. Lim
