Pascual okays amendments to FTAs
TRADE Secretary Alfredo Pascual has signed two agreements aimed at boosting the country’s free trade agreements (FTAs) and simplifying trade procedures.
Signed on Wednesday were the Second Protocol to enhance the Asean-Australia-New Zealand FTA (AANZFTA) and the First Protocol amending Asean-Hong Kong, China FTA (AHKFTA), which are expected to boost the Philippine FTA network. Asean is the Association of Southeast Asian Nations.
“The finalization of the Second Protocol to Amend the AANZFTA represents another milestone in our work to further strengthen regional trade and investment flows between Asean, Australia, and New Zealand. We want to ensure the agreement continues to benefit businesses and reinforce our strategic links in the region,” Pascual said in a statement on Thursday.
The updated regulations under the AANZFTA also introduce new rules to facilitate the trade of essential goods during humanitarian crises and address nontariff measures. It also offers increased stability for various sectors like professional services, education, transportation, construction, tourism, and banking services seeking to invest and offer services in Australia and New Zealand.
Also included in the Second Protocol are provisions for professional services and education services cooperation, allowing authorities to negotiate agreements on mutual recognition of professional qualifications and bilateral or regional cooperation in professional services sectors.
“These provisions will allow recognition of educational qualifications, digital education, blended learning, and other diverse forms of education delivery,” DTI said.
The department added that this also aligns with the adoption of the Transnational Higher Education Act that permits foreign universities to offer educational services by collaborating with a local institution.
“I am confident this agreement will contribute to a stable and predictable trade and investment regime as well as greater movement of skilled professionals in the region,” said Pascual.
The Second Protocol amends the original AANZFTA and First Protocol signed in February 2009 and August 2014, respectively.
“Our goal is to foster resilience and sustainability for the long term, facilitating the flow of goods and services, and attracting investments,” said Pascual.
The Trade chief also welcomed the signing of the AHKFTA First Protocol, aiming to enhance trade by simplifying export requirements between Asean and Hong Kong.
The amendment introduced more liberal regulations for various manufactured goods including food preparations, polystyrene, jewelry, woven fabrics, and denim, and will enable traders to qualify for reduced tariffs, the DTI said.
Pascual also emphasized the department’s support for cooperation initiatives under the AHKFTA, focusing on enhancing logistics, trade facilitation, digital technology utilization, expanding global market reach of micro, small and medium enterprises, and bolstering business networks to attract more investments.
“We recognize the developments in the global economy and the challenges that come with it. It is also important that Asean and Hong Kong optimize their economic partnership anchored on a rule-based system,” he said.