RP still committed to AFTA - Roxas

Trade and Industry Secretary Manuel Roxas II has assured members of the Japanese Chamber of Commerce and Industry of the Philippines (JCCIP) that the Philippines remains committed to the World Trade Organization (WTO) and the ASEAN Free Trade Area (AFTA).

"The Philippines remains committed to fulfill its commitments and to play within the rules of the WTO and the AFTA-Common Effective Preferential Tariffs (CEPT)," he said.

Roxas gave the assurance following the government’s decision to review all of its tariff rates. "The government’s move to review its tariff rates was necessary "because the conduct and environment of business has changed as compared to the time when these commitments were made," Roxas said.

Roxas added that "for those of you with the view of using the Philippines as a platform to access the rest of the ASEAN, be assured that we will remain members of good standing in AFTA."

He went on to say that "the products that you (members of JCCPI) manufacture here that you would then export to the other countries in AFTA will continue to be able to avail of the AFTA privileges."

According to Roxas, the Philippines commitment to AFTA is evidenced by the fact that 96 percent of the country’s 7,500 tariff lines are already at the zero to five percent range.

The DTI chief said the government is taking the necessary steps to bring the rest of the tariffs to the same level of zero to five percent by the end of this year, except for some industries like the petrochemical industry which has sought a deferment of its tariff reduction.

"As for the review of the most favored nation tariff (MFN) rates, it was merely to ensure that the rates are at par or near par with its neighboring countries," Roxas said.