RP urged to pursue competitiveness while bilateral talks with US are on hold
Manila Bulletin | 16 November 2006
RP urged to pursue competitiveness while bilateral talks with US are on hold
By BERNIE CAHILES-MAGKILAT
While the result of the recent US elections has put on hold the proposed bilateral Philippine-US free trade negotiations, the Philippines should pursue competitiveness efforts in areas that can not benefit from FTA deals like mining, IT, intellectual property rights, call center and business processing outsourcing.
Matthew Daley, president of the US-ASEAN Business Council, told reporters that the new US Congress, now in the hands of the Democrats from the Republicans, is not likely to extend President Bush’s, a Republican, fast track negotiation authority.
The President’s authority would expire in the summer of next year and this is going to put all trade negotiations with the World Trade Organization or any trade agreements with other countries on hold.
The US-ASEAN Business Council though is supportive of the proposed comprehensive US-RP bilateral free trade agreement but said the Philippine proposal for a phased-in FTA with the US is not bankable because the policy of the US government is to go for total FTA all at once rather than a sectoral FTA.
"My assessment is there will be much to do about positioning for the 2008 elections," Daley said.
And because of this, Daley said, the next fast track authority for the President is expected to be granted by 2009 making it impossible to bring into conclusion any trade negotiations not even the World Trade Organization before 2009 under a new President.
"2009 is a long way to go but there are other things the Philippines can do in the meantime. Go ahead in these areas where you can grow, do not wait for us," Daley said.
In the meantime, Daley said, the Philippines can do something to improve the competitiveness of the country’s growth areas like mining, ICT, intellectual property and business process outsourcing.
"These are areas could benefit from a local regime like repeal of laws and other reform measures. These areas cannot benefit more from an FTA deal but from a local regime," Daley said.
In the area of IPR, Driscoll said the Philippines should work for the ratification of the Internet Treaty because this would make the country more attractive to foreign investors.
Ratification of the Internet Treaty by Congress would raise the bar to being TRIPs (Trade Related Aspects of Intellectual Property Rights) plus compliant and makes the Philippines more attractive than countries that have not acceded to the treaty.
Driscoll underscored the need of the Philippines to improve its competitiveness because the ASEAN region is losing foreign direct investments to India and China.
