MANILA, Philippines - Putting in place a trade dispute settlement system, plus further liberalization of transport systems, as well as stronger linkages between the private support organizations and traders are all necessary as the Southeast Asian region is heading towards economic integration, government and private sector officials said yesterday.
In a forum organized by the Philippine Chamber of Commerce and Industry (PCCI) on opportunities and challenges with the Association of Southeast Asian Nations (ASEAN) economic integration, Philippine Exporters Confederation, Inc. president Sergio Ortiz-Luis, Jr. said that as the region prepares for the ASEAN Economic Community (AEC), a trade dispute system would have to be put in place where regional or bilateral trade and investment issues could be brought for resolution.
“Such a dispute settlement body, we believe, will be needed as more and more nations in Asia jump into the ASEAN economic bandwagon,†he said.
Apart from a dispute settlement system, he said there is also a need to further liberalize air, water and land transportation across borders to hasten intra-regional trade.
PCCI president Miguel Varela said in the same event that the business group, together with the ASEAN Business Advisory Council, has spearheaded a partnership between the Philippines and Indonesia’s business leaders for the establishment of the Davao-General Santos-Bitung roll-on roll-off route (Ro-Ro) to improve connectivity within the ASEAN.
The Ro-Ro service is expected to start by the middle of this year.
“This paves the way towards Philippines’ full use of the available policy instruments and infrastructure to benefit from the AEC,†Varela said.
Ortiz-Luis said strengthening the linkages of private support organizations to international traders will likewise be necessary in preparation for the AEC in order for businesses to take full advantage of the benefits that could be derived from free trade agreements.
“If business groups in each of the participating countries are directly linked with each other, it would be easier for them to find more opportunities for wider trade,†he said.
Bureau of Export Trade Promotion executive director Senen Perlada said in the same event stronger linkages would allow local players to establish partnerships in other ASEAN countries to take advantage of opportunities.
“Remember, when we think of the AEC, we are looking at a single market,†he said.
PCCI vice chairman Donald Dee said that in preparation for the AEC, the private sector needs to work with the government to ensure that policies that support businesses are in place.
The AEC will become a reality in 2015.
The AEC will transform the ASEAN into a region with free movement of goods, services, investment, skilled labor as well as flow of capital.