Bush encourages continuation of talks on possible RP-US FTA
PIA Press Release
2006/11/18
Bush encourages continuation of talks on possible RP-US FTA
HANOI (18 November) — United States President George W. Bush is in favor of continuing the discussions on a possible US-Philippines Free Trade Agreement (FTA) to further enhance trade relations between the two countries, Philippine Trade and Industry Secretary Peter Favila said today.
Favila said the US President expressed his favorable view on the proposed US-RP FTA during the meeting between President Gloria Macapagal-Arroyo and Bush on the sidelines of the 14th Asia-Pacific Economic Cooperation (APEC) Leaders’ Meeting that opened this afternoon at the National Convention Center in Hanoi’s My Dinh district.
Favila said President Bush expressed hopes that the talks on the FTA would continue even if he is no longer in office. His term ends next year.
"I want it. I want it not only for me but also for future Presidents," Bush was quoted as saying during the meeting.
The US remains the Philippines’ top economic partner in both trade and investment. The US is also the top destination of Philippine exports and is the second source of imports.
"I have been talking with Susan Swabb (US Trade Representative) on the matter," Favila said.
He added that the Philippines has sent "several missions to Washington" to map out the possible FTA but "there were mixed reactions."
Favila said the Philippine team is preparing a "concept" that would include three phases of the possible RP-US FTA since the US policy on FTAs is "really a comprehensive one."
In consultations with the different stakeholders, Favila said that under Phase 1 of the package, the two parties must agree on common products like garments and textile and may be electronics; Phase 2 would be the granting of additional concessions on more sensitive products; and, Phase 3 would be on comprehensive coverage of products and services.
Favila said that the Philippines would benefit much from an FTA with the US because of its being the largest economy in the world.
"As in any FTA, the gross domestic product (GDP) of any economy would increase significantly as long as the favorable environment is created," he said.
Asked on the timeframe, Favila said the Japan-Philippines Economic Partnership Agreement (JPEPA) signed in Helsinki, Finland last September took four years to be realized. The agreement is now awaiting the ratification by the Senate. (OPS/PIA)
