Gov’t pressed to start free trade talks with European Union
BusinessWorld | November 08, 2010
Gov’t pressed to start free trade talks with European Union
THE PHILIPPINE Chamber of Commerce and Industry (PCCI) yesterday renewed calls for the government to start negotiating a free trade deal with the European Union (EU), after noting that more Southeast Asian neighbors have begun talks with the Western bloc.
"The Philippines has to move fast in pursuing its negotiations for a bilateral agreement with the European Union ; otherwise it will be left out by other Association of Southeast Asian Nations (ASEAN) countries that are taking the same route for a trade deal with EU," the business group said in a statement.
The group is reiterating its stand as some ASEAN neighbors are already moving forward with their own negotiations with the EU, PCCI Treasurer Donald G. Dee said in a telephone interview.
"The EU is one major market that we see beneficial to our exports. As we know, other ASEAN countries like Vietnam and Singapore are at the advanced stages of negotiations, while Indonesia has already signed a PCA (Partnership Cooperation Agreement). Likewise, negotiations with Malaysia have also started," the PCCI said.
The government will have to move quickly — but "with caution" — to truly penetrate the EU market, the group added.
Earlier, Trade and Industry Secretary Gregory L. Domingo said he had already expressed the country’s interest for free trade agreement (FTA) talks to the European Commission’s Trade Commissioner Karel de Gucht in September.
But both have yet to start talks as the Philippines is still preparing its strategy, Trade Undersecretary Adrian S. Cristobal, Jr. said.
Mr. Cristobal had clarified, however, that studies can be made parallel to the negotiations as the government recognizes that timing is important.
The two parties could discuss preparations for negotiations at the signing of the PCA — a framework deal that must be laid down before an FTA can be forged — in December, Mr. Cristobal had said.
The business group went on to note that several export products stand to gain from a trade deal with the EU, particularly : vegetables, oil, textiles and apparel, paper, leather goods, electrical appliances, and car parts.
The EU was the Philippines’ top export market last year, accounting for roughly a fifth or $7.949 billion of total export sales of $38.435 billion. — J. A. D. Hermosav
