CEBU, Philippines – The Philippine government, through the Department of Trade and Industry (DTI) has expressed interest to pursue a free trade agreement (FTA) with the European Union (EU.)
During the recently concluded Association of Southeast Asian Nation (ASEAN) Economic Ministers' Meeting in Da Nang, Viet Nam, DTI secretary Gregory Domingo relayed the government's interest in negotiations to EU Trade Commissioner Karel De Gucht.
According to DTI, the deal has been tagged as necessary to keep up with neighbors currently forging similar agreements with the EU.
EU is the second largest trading partner of ASEAN after China. It is also the largest investor in the region.
A framework pack with the EU requires before FTA can be laid down is now in place as both concluded a Partnership Cooperation Agreement (PCA) earlier this year.
"We will now have exploratory talks. But before we enter into a deal, there will be widespread consultations," said DTI undersecretary Adrian Cristobal Jr.
Cristobal said this effort is part of the government's push to have the business sector utilize existing FTAs and also gain more funding for export.
The 27 EU member countries include; Belgium, France, (West) Germany, Italy, Luxembourg, Netherlands, Denmark, Ireland, UK, Greece, Portugal, Spain, Austria, Finland, Sweden, Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia, Romania, and Bulgaria.
Earlier, exporters in Cebu, through the Federation of Exporters of the Philippines (PhilExport-Cebu) called the PNoy government to strongly pursue more trade bilateral agreements with other countries to lessen the impact of the volatile foreign exchange.
"We need more bilateral and multi-lateral trade agreements with our neighbors, and trade with them more aggressively," said PhilExport-Cebu executive director Fred Escalona.
Although, there are already existing bilateral agreements with economic powers such as the Japan's Japan-Philippine Economic Partnership Agreement (JPEPA) and China's Common Effective Preferential Tariff (CEPT), which exporters have to seriously take advantage to, Escalona said adding that it would be very beneficial for exporters if they are given wider choices.
Although, the Philippines, still has to sign bilateral agreements with giant economies like the United States and Europe, Domingo said exporters or Filipino businessmen in general should find out the different bilateral agreements signed by the Philippines with other countries, as there are growing number of them.
At present, the biggest agreement the country has made is with Japan, through JPEPA, soon Domingo said the Philippines will have bilateral agreements with European Union (EU) and the United States.
"The Philippines is the lowest in terms of availing of the tariff advantages offered by several agreements with countries. Exporters are not taking advantage of this. Maybe because for the lack of knowledge or information," Domingo said.
Domingo also suspected that because the ASEAN market is still an emerging market for most exporters, whose bulk of clientele are in the US and Europe, they still have to familiarize the "how to's" in tapping the ASEAN consumers.
He said exporters should take advantage of the 600 million market-based of the ASEAN region, and the rich bilateral agreement signed by the Philippines within the ASEAN member countries could give them total advantages. (FREEMAN)