Officials at odds over US trade deal
Manila Times | Monday, August 28, 2006
Officials at odds over US trade deal
LOCAL leaders expressed differing views on whether the Philippines has the capacity to enter into a bilateral free-trade agreement (FTA) with the United States or be lumped together with its Asean neighbors in a region-wide FTA agreement.
Foreign Affairs Undersecretary Edsel Custodio said the country must move toward a region-wide FTA with United States to avoid inconsistencies that may hamper the proposed single-market integration within the Asean.
“We should move as one region so as to avoid differing provisions and rules, especially when it comes to liberalization, because your idea is to integrate member nations into a single market,” Custodio told reporters.
The DFA official reasoned that Asean must be integrated in a uniform basis and having the FTA as a group presents the most logical solution.
On the other hand, Ambassador Donald Dee, head of the Philippine Chamber of Commerce and Industry, said the country must move to secure a bilateral FTA with the US, citing the recent FTA the US has signed with Singapore and the imminent formalization of its deal with Thailand. Dee mentioned there are talks that Malaysia will be the next to negotiate an FTA with the US.
He said the country has had talks with the US on trade enhancements that will eventually lead to an FTA, with garments and textiles at the forefront of the Philippines’ thrust.
“We have a competitive advantage when it comes to garments, electronics and IT. We have to go toward the bilateral with US and iron out the kinks because we will be left behind by our neighbors if we don’t,” Dee said.
On the recent signing of the Trade and Investments Framework Agreement between the Asean and the US, considered the first step toward a region- wide FTA with US that will eventually speed up the integration of Asean into a single market by 2015, he said: “We are looking at RP trade first, and focusing on our traditional exports. We have our own national interests to look after.”
Custodio, meanwhile, added that the country must push for the resumption of the stalled Doha development round, saying it presented the country the best platform for multilateral trade talks and negotiating parity with more developed nations.
“We need to support the WTO. It is binding commitment, so each member is treated with respect. It is our safest framework for multilateral trade,” he said.
The DFA official said it is in the country’s best interests that the Doha talks resume, and expressed hope that the development round will resume in due time.
“The Doha talks are not dead,” Custodio said.
— Rafael S. Santos
