RP bizmen urging government to start bilateral talks with EU for FTA
BusinessMirror, Manila
RP bizmen urging government to start bilateral talks with EU for FTA
17 November 2009
Filipino businessmen are asking the government to take the initiative in starting the bilateral talks between the Philippines and the European Union (EU) for a free-trade agreement (FTA) after a study made by a think tank showed that the country will benefit immensely from it.
The Philippine Chamber of Commerce and Industry (PCCI) urged Trade Secretary Peter Favila to immediately send word to EU Commissioner for Trade Catherine Ashton that the Philippines is now ready to engage the European Community in a bilateral FTA.
Donald Dee, PCCI chairman emeritus and chairman of the group’s think tank Universal Access to Competitiveness and Trade (U-ACT), said the country cannot afford to dilly-dally since its Asean neighbors have already gone ahead in discussing an FTA with EU.
“EU might no longer be interested in engaging the Philippines if one country has already signed with them with the same market as ours,” Dee said.
The EC delegation in Manila, as well as the European Chamber of Commerce of the Philippines, has already said earlier that for the FTA talks to begin, Favila only needs to make a policy pronouncement that the country is now ready to do it.
According to the 400-page study done by the U-ACT, entitled “Merits to Philippine Business of Having a Bilateral Philippines-EU Free Trade Agreement,” pursuing a bilateral track with EU would be beneficial to Philippine industries.
Among the Philippine offensive interest to EU are fishery, seafood and marine products (Mindanao tuna), broilers, agricultural products (Mindanao), fresh fruits (bananas), muscovado, processed fruits (mango, pomelo, banana chips), processed or semiprocessed coffee products, chemicals (oleochemicals), coco-based products (VCO and beauty byproducts, e.g., soap, perfume), natural rubber, biofuel products, mining products, furniture, jewelry, handmade paper, cameras, health and tourism, ICT services, services sector (skilled labor).
Some of the sectors that are likely to benefit from the pact include vegetable, oils and fats, textiles/apparel, motor vehicles parts, other manufacturers.
Other potential sectors are financial services and insurance, chemical products, communication, construction/dwellings, energy and water supply, paper and publishing, leather, machinery and electrical appliances.
The study also noted that with an RP-EU FTA in place, the existing European companies here will be encouraged to expand their businesses and infuse more capital.
EU accounts for 17 percent of world trade in goods, 25 percent of services trade, and half of global FDI.
In 2006 EU tariffs on Philippine exports averaged 5.5 percent for agriculture and 1.4 percent for nonagriculture goods.
Since the time Asean-EU FTA was stalled in May, some of the countries in the region have decided to engage EU in bilateral talks. In July Indonesia has signed a partnership and cooperation agreement; Singapore, Thailand and Vietnam are on the advance stages of negotiations, while Malaysia and Brunei are scheduled to begin talks with EU.
