Philippines hopeful on starting free trade talks with US

MANILA, Philippines — The Philippines is hopeful talks for a free trade agreement (FTA) with the US could start as it awaits the latter’s formal notification to its Congress, which could be made this month.

 “We are just waiting for US side to formally notify their Congress which may happen early part of this year,” Trade Undersecretary Ceferino Rodolfo told reporters. 

He said there is a need for the Office of the US Trade Representative (USTR) to formally notify the US Congress of its intent to pursue talks for a bilateral trade agreement with the Philippines in line with procedures under the Trade Promotion Authority (TPA).

Under the TPA, the US administration would have to give Congress 90 days notice before it can start negotiations for trade agreements. 

TPA’s procedures ensure the USTR develops negotiating positions which include Congress’ views. 

Last July, Reuters reported that US Trade Representative Robert Lighthizer said before the US Senate appropriations subcommittee that the US would want to have a trade deal with the Philippines. 

Rodolfo said earlier the US and Philippines are ready to work on enhancing the bilateral trade relationship further as the parties have resolved issues under the Trade and Investment Framework Agreement (TIFA) in October last year.

In particular, both parties have agreed to work together on greater access of agricultural products to the US and continued acceptance of vehicles meeting US safety standards in the Philippines. 

In addition, the parties agreed to continue discussions on the National Retail Payments System and other measures related to electronic payments, as well as on the Philippines’ request for relief from US safeguard measures on solar cells and tariffs on steel and aluminum.

Both countries will also work on expanding the US Generalized System of Preferences (GSP) program which eliminates tariffs on certain items from beneficiary countries like the Philippines, to include travel goods. 

The Philippines counts the US as among its biggest trade partners as total bilateral trade reached $27 billion in 2016. 

Of the total bilateral trade value, $18 billion was accounted for by trade in goods, while nearly $9 billion was in services.

As the Philippines is a beneficiary of the US GSP, about $1.5 billion of the country’s exports enter the US market duty-free per year.