Philippines expects bilateral trade with EFTA to grow by 20%

• Nov 23, 2018

MANILA, Philippines — The Philippines is aiming for a 20 percent increase in bilateral trade with the European Free Trade Association (EFTA)  by next year, and to at least double the trade volume in three years, following the implementation of the parties’ free trade agreement (FTA).

“Our objective is for this (Philippines-EFTA FTA) to really promote more of our exports. First to increase our bilateral trade, both exports and imports by, let’s be modest, increase by 20 percent first for the first year.

“Then, moving toward being able to double and triple it as we move toward the third year,” Trade Undersecretary Ceferino Rodolfo said in a press conference.

The Philippines’ FTA with EFTA, which groups Iceland, Switzerland, Lichtenstein and Norway, entered into force last June 1.

Under the Philippines-EFTA FTA, industrial products, as well as fish and marine products from the Philippines can enter EFTA states at zero tariff.

The FTA also provides concessions on basic and processed agricultural products from the Philippines.

Last year, total merchandise trade between EFTA states and the Philippines reached $900 million, with EFTA’s exports to the Philippines amounting to $384 million and exports from the Philippines to EFTA reaching $516 million.

Among the goods exported by EFTA states to the Philippines were pharmaceuticals, clocks and watches, and machinery and mechanical appliances, while the Philippines exported precious metals, electrical machinery, and mechanical appliances to EFTA.

Swiss Ambassador Andrea Reichlin said based on Switzerland’s experience on FTAs with other countries, trade volume would increase every year and the same could be expected with the Philippines, following the entry into force of the bilateral trade agreement.

“In the Philippines, as we know there is lots of room to improve trade and investment and generally, partnerships, exchange of technology.

“I think the important point, of course, is the volume and that it grows steadily and for that, we need to advertise this agreement.

“We need people to know not only that it’s there, but also how to use it. This is very important especially for the micro, small and medium enterprises,” she said.

She said since the FTA took effect, exports from the Philippines which entered EFTA have enjoyed zero tariff.

The first shipment from EFTA under the FTA, meanwhile, arrived in the Philippines last Oct. 25.

Norwegian Ambassador Bjorn Jahnsen said the first EFTA shipment to the Philippines shows the FTA is working and that both parties are open for business.

“We are so happy with this agreement. We think it is the basis for future growth of trade between our countries,” he said.

Rodolfo said the FTA not only opens opportunities for Philippines firms to tap the EFTA market, but also makes it easier to export through trade facilitation schemes.

He said at present, Filipino firms have to get a certificate of origin (CO) or a document to attest the goods are wholly produced or manufactured from the Philippines every time they would export.

Source: https://www.philstar.com/business/2018/11/23/1870830/philippines-expects-bilateral-trade-efta-grow-20#UQHOcGhhcPVYRSrS.99