Philippines, US trade talks generate positive results
Wednesday August 10, 2005
Philippines, US Trade Talks Generate Positive Results
MANILA, Aug 10 Asia Pulse - Trade consultations between the Philippines and the United States continue to generate positive results for both countries.
A key element in the Philippines and United States bilateral engagement, the recently concluded videoconference of the Philippines-US Trade and Investment Council (TIC) has been instrumental in developing a more dynamic and stronger economic relationship and helped resolve several outstanding trade and investment issues between the two countries.
Department of Trade and Industry (DTI) Senior Undersecretary Thomas G. Aquino, who headed the Philippine panel, manifested gains achieved in the continuing bilateral discussions including opportunities to take up matters on trade and investment, agriculture, intellectual property rights and telecommunications, among others.
He noted both countries will continue the collaborative work under the TIC umbrella, recognizing its strategic importance to keep trade and investments flowing.
During the TIC, Aquino acknowledged the granting of the Philippines’ request for a waiver for the country’s coco fatty acids exports from the competitive need provisions of the US Generalized System of Preferences (US GSP).
He also sought positive action to Philippine GSP petitions submitted this year for the 2005 GSP Annual Review, which include: Competitive Need Limit (CNL) waiver for dried mangoes and inclusion of carrageenan and certain watches, which if granted, will allow these Philippine exports to enjoy duty free access to the US market.
Philippine exports of these products to the US amount to some US$124 million.
The US was informed of the recent lifting by the Department of Agriculture (DA) of precautionary measures imposed on the importation of live cattle, beef and their products from the US, which will allow the latter to resume exporting beef to the country.
Aquino also said that there were a number of bilateral concerns and interests that figured prominently in the discussions. While noting significant developments in the area of IPR (intellectual property rights) enforcement, the United States wants to see more improvements to get the Philippines out of the Special 301 Watchlist.
Special 301 Watchlist refers to the the US’ trade loss due to violations on IPR.
The US also urged the Philippine government to continue pursuing investor friendly policies, taking note of current policy initiatives on tariffs and other fiscal and investment related measures.
The two panels also discussed talks on telecommunications, another area of interest that has immensed business potential especially in the area of third generation (3G) wireless technology.
The Philippine panel during the TIC enlisted US support to ensure the successful operation of the first substantial investment of a Philippine company in the US telecommunications industry in the Commonwealth of the Northern Marianas Island.
The US was also receptive to the countrys desire for capacity in the countrys SME (small and medium enterprise) food exporters," Aquino said.
He also said the US will work with the Philippines on energy conservation initiatives in the automotive sector being spearheaded by the Board of Investments.
The Philippines also expressed that it is looking forward to the US funding support for certain key projects identified as part of the governments anti-corruption program.
The discussion also touched on the possible creative strategies to further enhance Philippine trade and economic engagements with the US.
Aquino updated the US panel that the DTI commissioned the Philippine Institute for Development Studies (PIDS) in 2004 to conduct a study on the impact and prospects of a Free Trade Agreement (FTA) with the US under the latters Enterprise for ASEAN Initiative.
The study, which covers impact analysis on the general economy as well as on specific sectors, is expected to be completed soon, he said.
The findings of the study will then be validated through regional public consultations to be held in major cities around the country. The DTI official stressed that the participation of the private sector, as key stakeholders in this initiative, is crucial to the process of gearing up for possible FTA negotiations.
The United States is presently the second top trading partner of the Philippines, after Japan. It has established several regional and bilateral FTAs globally. In ASEAN, it has forged an FTA with Singapore and is currently negotiating one with Thailand.
On the ASEAN regional front, the Philippine panel was informed during the TIC that the US Trade Representative will soon publish the results of the East-West Study on the prospects of an ASEAN-US FTA.
(PNA)
The US Trade Representative has issued a statement on the outcome of the US-Philippine consultation, which is available online at the USTR website.
