MANILA, Philippines - The government is looking at entering into free trade agreements (FTA) with six countries led by the United States to boost foreign trade.
In a press conference, Trade Undersecretary Adrian S. Cristobal Jr. said that they are now mulling the possibility of discussing FTAs with the US, Taiwan, Vietnam, Europe, India and China.
Although the country has an FTA with the ASEAN and China, Cristobal said it is still beneficial the Philippines if there is a separate agreement with Taiwan.
“Within the year we would like to open a formal discussions with Taiwan,” he said.
Former Trade Secretary Jesli A. Lapus has already said that a bilateral agreement with Taiwan is not necessary because the Philippines and Taiwan already have the Joint Economic Conference. Lapus said that with this in place, a free trade agreement (FTA) with Taiwan is no longer needed because the JEC will already ensure good trade and investment relations.
However, Ambassador Donald Lee, Representative of the Taiwan Economic Cooperation Office (TECO), already warned the Philippines that the signing of the Economic Cooperative Framework between China and Taiwan in July would result in the transfer of some Taiwanese factories in China because it is cheaper to produce in China.
Lee cleared that the FTA with the Philippines has nothing to do with the one China policy. He stressed the urgency of forming an FTA with Taiwan because he said firms would choose to locate in China because of the big domestic market. China has a population of 1.2 billion while the Philippines only has 92 million. The access to raw materials is also easier in China rather than the Philippines.