RP trade deal not on US agenda
GMA News TV, Philippines
RP trade deal not on US agenda
By Felipe Salvosa II, sub-Editor, and Bernadette Sto. Domingo, Reporter/BusinessWorld
9 April 2008
Filipino exporters will have to wait until a new US president opens up more markets and expands trade with the country’s largest trading partner, with a bilateral free trade deal with the Philippines absent in the Bush administration’s final policy agenda.
The 2008 agenda, prepared by the Office of the US Trade Representative, indicates Washington’s preference to first advance its interests through bilateral dialogues with the Philippines, even though trade negotiations are well advanced with respect to neighboring countries in Southeast Asia.
The outgoing Bush administration still has its plate full of trade deals up for congressional approval - Colombia, Panama, and South Korea - but free trade talks have begun with Malaysia and are set to resume with Thailand, one of the Philippines’ export rivals.
The report also expressed Washington’s desire to enter into new bilateral or plurilateral deals that would create "market openings" particularly for agriculture, but cited only China, Japan, India, Malaysia, and Europe.
The Philippines still enjoys a trade surplus with the US, amounting to $1.7 billion in 2007, but the US is slowly bridging the gap, reducing its trade deficit with the Philippines last year by more $380 million by trimming imports and achieving a marginal increase in exports.
At least two US officials - the Assistant Secretary of State and a White House adviser - have said a bilateral free trade deal with the Philippines was not a priority and that the bilateral dialogues under a Trade and Investment Framework Agreement needed to be enhanced first. The US has also urged the Philippines to prioritize stalled World Trade Organization (WTO) talks.
Agriculture Undersecretary Segfredo R. Serrano said the Philippines was apparently off the US radar screen in terms of free trade agreements or FTAs.
"The present US administration is about to conclude so [officials] could not commit to negotiate. We just have to deal with the new administration," he said.
But Mr. Serrano said the Philippines was willing to sit down and negotiate with the US once a WTO deal is finalized.
"If it would be advantageous for us, why not? The US is the biggest market in the world. It’s stable, has high income and has reasonable standards. If the concessions surpass what we get in the WTO, I see no reason why we should not have a US-RP FTA," Mr. Serrano said.
The US trade policy paper said that in 2007, Washington discussed with Manila "the importance of maintaining an open trade and investment regime and expressed concerns about a number of issues, including relating to customs rules and procedures, sanitary and phytosanitary standards, and the protection and enforcement of intellectual property rights."
It noted that in November, the Philippines finally agreed to allow full market access for imports of all US beef and beef products from animals of all ages, consistent with world animal health guidelines. Previously, the Philippines only allowed the import of US deboned beef and offal from animals 30 months or less.
The policy paper also noted that the US and the Philippines had agreed to "enhance bilateral cooperation" to prevent illegal transshipment of textiles and apparel to the US.
Lawyer Jeremy I. Gatdula, trade principal at audit and advisory firm Manabat Sanagustin & Co., said the Philippines would have to submit a formal, concrete request to the US if it wants a free trade deal. So far, only tuna and garments exporters have been vocal in calling for more trade concessions from the US.
"The reason why we are not on the list of the US is we have not made any formal overture," he said in an interview.
"But the fact that the US has also not made a formal offer to the Philippines based on the latest documents released by the USTR should also be considered."
