PH seeks permanent free trade with US
Credit to Author: Tyrone Jasper C. Piad| Date: Sun, 01 Dec 2019 16:11:46 +0000
The Philippines wants more of its export products to the United States enjoying zero-tariff — and on a permanent basis — as free trade talks between the countries start next year.
Trade Secretary Ramon Lopez, on the sidelines of an event last week, told reporters the country would like to include footwear and garments among the products under the US Generalized System of Preferences (GSP).
Under the deal, the Philippines is currently enjoying zero or reduced tariffs to over 5,000 goods or 48 percent of the 10,600 US tariff lines.
But the GSP privilege is only effective until Dec. 31, 2020. The Philippines would have to renew its GSP status to achieve preferential position again after that.
“We’ll continue [to push for a] more permanent basis,” Lopez said.
The Trade chief noted that US Trade Representatives were still tackling the US-Mexico-Canada Agreement (USMCA) but expressed hope the Free Trade Agreement (FTA) talks with the Philippines would be next.
“We’re hoping that right after that, we can have that go signal,” he said.
Earlier, American Chamber of Commerce of the Philippines Inc. (AmCham) Executive Director Ebb Hinchliffe said that FTA negotiations between the two countries might start next year already, noting the pending USMCA was Washington’s focus for now.
Hinchliffe expressed confidence that negotiations between Manila and Washington, which he intends to bring up to the Congress early next year, would not take too long.
“We are common partners, we know each other very well, we know our needs and wants very well. This trade agreement should happen very quickly,” he said.
As of end-September, Philippine shipments to US reached $8.57 billion, showing a 7.4-percent growth from the previous year’s $7.98 billion, according to the Philippine Statistics Authority.
US imports to the country, meanwhile, declined by 3.3 percent to $5.80 billion in the first three quarters from nearly $6 billion a year ago for the same period.
As of now, the Philippines’ only bilateral free trade agreement is with Japan under the Philippines-Japan Economic Partnership Agreement. The country is also working to conclude the FTA negotiations with South Korea by first half of next year.