In fact, he pointed out, 95 percent of the country’s industrial tariffs are already within the zero-to five-percent level committed under the Common Effective Preferential Treatment (CEPT) scheme of AFTA.
Local industries, he pointed out, have had enough time to prepare for the free trade agreement.
He explained that while the government had agreed to the petrochemical sector’s request for a delay in the liberalization of the sector, the government is doing it within the available AFTA protocol.
Roxas also clarified that while government is conducting a review of all other petitions by various sectors for continued tariff protection, it is still set on abiding to its international commitments.
Roxas warned that if the Philippines decides to delay joining the AFTA, it would have to do so unilaterally and "calculate the cost" to the country.
The cost, Roxas further warned, would be "great."
"It is the President’s position that we abide by our international commitments and avail of remedies available within the ambit of our commitments," Roxas said adding that "there is no shift in policy."
"The Philippines continues to be mindful of its international obligations," he said.
He stressed that there is no inconsistency in reviewing the petition of local industries pursuant to President Arroyo’s directive and availing of remedies available in compliance with international agreements.
A possible consequence of unilaterally backing out of AFTA would be higher tariffs being slapped on Philippine products by its ASEAN neighbors.