TRM recommends status quo on industries’ bid for tariff hike

The Trade and Related Matters (TRM) committee is recommending a status quo on all the requests of various industries for an increase in their tariff levels, both for the Common Effective Preferential Tariff (CEPT) scheme under the Asean Free Trade Area and the Most Favored Nation (MFN) rates under the World Trade Organization (WTO).

Under the CEPT-AFTA, the Philippines, along with its ASEAN counterparts, is supposed to bring down its tariff rates to between zero to five percent by January next year.

Under the WTO, member countries are also supposed to bring down their tariff to five percent by 2004.

According to Trade Undersecretary Thomas Aquino, except for the petrochemical industry, the TRM does not see the need to shake up the whole tariff system.

"Raising tariff rates are requested by some industries would be quite difficult and complicated," Aquino said.

Instead, Aquino said, the TRM would be more agreeable to an extension of current tariff levels.

"In addition, the TRM would be willing to review annually the various industry sector tariffs under the CEPT-AFTA," he added.

However, in the case of MFN rates, Aquino said, the government prefers to maintain the tariff rates at their current level to allow the country some leverage in negotiations in the event of another round of trade talks.

"It would not do the Philippines any good to bring down its MFN rates ahead of others," Aquino stressed.