PH Remains Keen on Establishing Free Trade Agreement with US

In an effort to forge stronger economic ties between the Philippines and the United States, the Department of Trade and Industry (DTI) remains persistent in encouraging the establishment of a free trade agreement (FTA). Trade Secretary Ramon Lopez hopes that FTA negotiations could be prompted soon to lift tariffs on certain export products and provide benefits to micro, small and medium enterprises (MSMEs).

“The next step is really how we can elevate it into an FTA so it becomes a longer lasting kind of trade arrangement,” explained Lopez during a recently held virtual event. The Philippines has enjoyed various perks under Washington’s Generalized System of Preferences (GSP), a unilateral preferential trade arrangement by the US focused on spurring economic growth, development, and trade.

There are 122 beneficiaries — either developing or least developed countries — covered by the GSP, all of which are granted duty-free market access to approximately 5,000 products into the US. Unfortunately, the Philippines’ GSP perks had already lapsed on December 31, 2020, and its renewal is still up in the air.

“But certainly, it’s [GSP] a very good program that’s been a big help to many marginalized sectors in the country,” Lopez affirmed. Marine products and coconut-based products are just a few of the goods that are being exported to the US through the GSP.”A lot of exporters, a lot of MSMEs who have been part of the global value chain have started to enjoy exporting products.”

The DTI chief has also urged American firms to look to the Philippines for investment opportunities in various sectors such as information technology-business process management, electronics, automotive, electric vehicles, hyperscalers, and data centers. “The Philippines and the United States will always remain strong partners. We aim to be both a valuable contributor to your companies’ global business’ growth, as well as a strong partner in building back towards a better, brighter post-pandemic future,” he added.

Additionally, the government’s  Strategic Investment Priorities Plan (SIPP) is already nearing finalization which will hopefully increase the interest of investors to do business in the Philippines. Under the Corporate Recovery and Tax Incentives for Enterprises (CREATE), SIPP will offer an array of incentives to potential investors.

Source: BusinessMirror