Free trade pact to boost RP-US partnership, says GMA

SINGAPORE (via PLDT) – President Arroyo said a free trade agreement (FTA) between the Philippines and the US would boost the strategic partnership of the two countries as well as strengthen their respective economies.

Speaking to reporters en route here from Vietnam, the President said she and US President George W. Bush agreed during their meeting at the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in Hanoi that both sides would skip the usual exploratory talks to hasten the forging of the FTA.

"The Philippines and the US both share a common agenda of free trade in APEC. It boosts our strategic partnership for a safer and prosperous world," Mrs. Arroyo said.

She said the Philippines and the US share the ideals of modern democracy."

"We fight for peace, freedom and freedom from want. We have a comprehensive political and economic alliance so it’s just logical that we have an FTA that rides along with our other bilateral and multilateral trade arrangements in East Asia," she said.

Mrs. Arroyo noted the Philippines is part of the Asean Free Trade Area and has an "early harvest" pact with China. She said free trade agreements "put nations together and harmonize people."

During their meeting, the two leaders agreed that the time is ripe for a an FTA between the Philippines and the US after years of moving cautiously on the issue.

Mr. Bush gave instructions that US Trade Representative Susan Schwab meet with Trade and Industry Secretary Peter Favila to formally start negotiations.

Favila said the country has sent five missions to Washington in the past for the FTA. A proposal would soon be forthcoming from the Philippine side to be placed on the negotiating table.

Mrs. Arroyo pointed out that in the past, several US trade and congressional officials as well as the American business community "were not very keen on a trade agreement with the Philippines" as it might be disadvantageous to them.

"But when I took it up with President Bush this time he said ‘yes’ immediately," she said.

The President said she told Mr. Bush that two countries would have start negotiations "right away." Instead of going through the lengthy exploratory talks that may take years, the Philippines would write a draft FTA for the US to consider or amend.

Mrs. Arroyo said she is now challenging the local business sector to immediately come up with a proposed draft since it was the Philippines that has been prodding the government to seek an FTA with the US.

The President said she met shipping magnate Doris Magsaysay-Ho, chief executive officer of Magsaysay Maritime Corp. and a member of the influential APEC Business Advisory Council, to speed up their work.

The President is hoping the FTA would be forged before she steps down from office in 2010.

Favila admitted US trade officials have softened their opposition to an RP-US FTA when he proposed that it be implemented in phases.

He said an FTA would help in the growth of other exporting sectors, including garments.

Last September, the Philippines and Japan forged the Japan-Philippines Economic Partnership Agreement that eased the entry of selected goods and services of both countries to each other’s markets.