PHL cites agri, MSMEs as its WTO priorities

THE Philippines is seeking to limit developed country subsidies for agriculture and expand international trade opportunities for micro, small and medium enterprises (MSMEs) during the 11th Ministerial Conference of the World Trade Organization (WTO) in Buenos Aires this week.

Trade Secretary Ramon M. Lopez in a statement said that the Philippines will attempt to bring the Doha Development Agenda (DDA) back in focus as the overall framework for the negotiations, as it seeks to lower trade barriers.

“In particular, the DDA highlights the need to provide a discipline on the subsidies being given by developed countries to their agriculture; and provide more effective temporary protection from price volatilities to poor, vulnerable farmers,” he added.

According to the declaration in 2001 when the DDA was formed, the agenda recognizes the role of trade in the promotion of economic development and the alleviation of poverty.

MSMEs are the leading class of enterprise in the Philippines, but Mr. Lopez said that they only account for 35% of total output. Despite robust economic growth, the poverty incidence rate remains high at 21.6%, according to Philippine Statistics Authority data for 2015.

Mr. Lopez said that they will also seek arrangements to establish a working group under the general council “to consider how the multilateral trading system can impact and benefit MSMEs, with particular consideration to the needs and interests of developing and leastdeveloped countries.”

He added that the Philippines is expecting a ministerial decision delivered on an MSME work program that considers the development levels of each country to support the “inclusive globalization,” which President Rodrigo R. Duterte has been pushing since the Asia-Pacific Economic Cooperation Summit last month.

The Philippine delegation is also lobbying to further special safeguard mechanism (SSM) for agriculture, an initiative which stalled in 2015. Similar to the DDA, the SSM grants developing economies the authority to increase taxes on imported agricultural products temporarily should there be a need to balance the playing field for the sector.

Agriculture Secretary Emmanuel F. Piñol, who will be co-leading the delegation, will be present during the dialogue to discuss the rules on domestic support and export restrictions under the SSM.

“It prevents irreversible injury to every vulnerable farmers against price volatility. It also serves to balance large subsidies given to agricultural products in rich countries,” Mr. Lopez said. —