Phl trade deals ‘underutilized’

CEBU, Philippines - The Philippines’ free trade agreements with other countries have remained underutilized until this day despite efforts from the government in encouraging Filipino businesses, specifically the Small and Medium Enterprises (SMEs) to make use of the deals.            

The Department of Trade and Industry said competitiveness issues will continue to threaten local businesses if SMEs will keep on snubbing the FTAs.

DTI assistant secretary Rafaelita Aldaba once again reiterated the government’s call for SMEs to avail of the opportunities provided for in the FTAs.

In her visit to Cebu, Aldaba called on Cebuano businesses to act now and maximize the trade agreements to establish a foothold in the global arena.

Earlier, economist Cielito Habito made the same call saying the FTAs entered by the government with other countries, particularly within the ASEAN region will serve as sure-fire ticket for SMEs to well position themselves in the ASEAN ground.

Obviously, there are still SMEs who do not know how to take advantage of the FTA that the Philippines has entered into with different economies in the world and within the ASEAN region, Habito said.

He added that SMES, which comprise of over 90 percent of the Philippine business profile across industries, should study the opportunities in doing businesses within or outside ASEAN--the Free Trade Agreements that the Philippines has entered into  and avail of the duty free privileges.

He said, while ASEAN integration offers exciting opportunities for businesses, SMES should be able to do its "homework", otherwise they will fall into the other side of ASEAN integration impact and get swallowed by the overwhelming competition.

In Cebu, DTI-7 has opened up a help desk to assess businesses that may want to know about FTAs and how they are going to take advantage of it.

DTI-7 regional director Asteria Caberte said that although there are only a few businesses that expressed interest to register their businesses into it, still a good number of SMEs still need to be pushed. (FREEMAN)