Poor infra weighs on PHL ‘enabling trade’ ranking
THE Philippines fell one notch in a global ranking of how economies enable the flow of goods, dragged down by low scores in infrastructure and operating environment.
According to the Global Enabling Trade Report 2016, the Philippines placed 82nd out of 136 countries, scoring 4.1 on a 1-7 scale, with 7 considered the highest. The country was 81st in the recalculated 2014 ranking.
According to the report, the Enabling Trade Index (ETI) assesses the performance of over a hundred economies based on four criteria: market access; border administration; transport and digital infrastructure; transport services; and operating environment.
The study is published every two years by the World Economic Forum and the Global Alliance for Trade Facilitation.
The Philippines ranked 91st for infrastructure, scoring 3.5, after a 2.6 — its lowest score under any pillar — in the availability and quality of transport infrastructure, a rank of 116th.
Under the same subindex, the country placed 85th in the availability and quality of transport services with a score of 3.7. It was 76th in availability and use of ICT.
In the subindex rating the operating environment, the Philippines ranked 104th with a score of 3.9. In border administration, the country was 93rd after scoring a 4.1.
The study said that the largest developing economies, such as China and India, tend to offer limited access to their markets, but noted that the Philippines is among the “notable exceptions” as it ranked 22nd in the subindex on market access, scoring 5 points.
The Philippines ranked 22nd in domestic market access while placing 39th in foreign market access, scoring 5.6 and 4.5 respectively.
The Philippines, as well as the other member states of the ASEAN region, was recognized for keeping its market open at a time when protectionist sentiments prevail in developed economies.
“ASEAN members have become more open while enjoying better foreign access, as a result of the region’s steady integration and thanks to a number of trade and investment agreements with its main partners,” the report said.
“At the same time, the current ‘trade fatigue’ in advanced economies is reflected in the lack of progress in trade liberalization in Europe.”
Moreover, in the press statement that accompanied the report, WEF Founder and Executive Chair Klaus Schwab said warned against protectionism.
“Free trade remains the most powerful driver of global economic development and social progress. The challenge for leaders today is to confront protectionism but they also have a duty to make trade a source for more inclusive growth,” he said in a statement.
The United States, which elected Donald J. Trump, ranked 22nd with a score of 5.2. Mr. Trump ran under a protectionist program, promising to bring jobs back to the US.
Singapore topped the index with a score of 6 points, followed by the Netherlands and Hong Kong, which both scored 5.6
Meanwhile, Venenzuela, Chad, and Yemen were at the bottom of the list, each scoring 2.9 points. —