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Philippines needs more FTAs to sustain mfg growth
MANILA, Philippines – The Philippines needs to forge more free trade agreements (FTAs) with other countries if it wants to sustain the manufacturing sector’s growth, the Department of Trade and Industry said.
In a briefing Tuesday, DTI Assistant Secretary Rafaelita Aldaba said forging FTAs with more countries is an important strategic action needed to ensure the growth of the manufacturing sector.
Aldaba said the trade department is negotiating with the European Union and Chile for a possible FTA.
Apart from this, the DTI is planning to pursue a bilateral agreement with the US following the latter’s decision to drop out of the Trans-Pacific Partnership(TPP).
“The best approach for us is to forge a bilateral agreement with the US so we can be assured of market access – Not only market access, also in terms of promoting and taking opportunities arising from investment,” Aldaba said.
Aldaba stressed the importance of engaging the US in a bilateral partnership agreement, as it is one of the Philippines’ biggest trade partners.
“I think the US has announced that while it is not joining the TPP, it will go into bilateral partnership agreements with selected partners,” Aldaba said.
However, Aldaba said no formal talks between the Philippines and the US have been conducted.
Aldaba added the DTI is open to forging bilateral agreements with the other member countries of the TPP.
Forging more FTAs with other countries is one of the recommendations made by the Joint Foreign Chambers (JFC) in the manufacturing policy notes it presented on Tuesday.
The policy note discussed the performance of the manufacturing sector, its challenges and suggested ways to sustain the sector’s growth.
“The goal is to create a globally competitive manufacturing sector that would contribute 30 percent of the Philippines’ total value added and 15 percent of total employment,” JFC said.
In the past four years, the manufacturing sector’s average growth exceeded seven percent, contributing P2.5 billion to the total gross value. Total revenues of the manufacturing industry reached P7.5 trillion.
Source: http://www.philstar.com/business/2017/03/09/1679226/phl-needs-more-ftas-sustain-mfg-growth