PH exporters urged to tap growing FTA benefits – DTI

THE Department of Trade and Industry (DTI) is urging Filipino exporters to start maximizing this year the expanding benefits made available by the free trade agreements (FTA) and other preferential trading regimes to which the country is an active member of.

Agnes R. Legaspi, assistant director of the DTI’s Export Marketing Bureau, reported during a recent exporters’ forum that the Philippines now has six existing FTAs under the Association of Southeast Asian Nations (Asean) as well as two bilateral FTAs that include the newly ratified Philippine-European Free Trade Association (PHEFTA FTA).

Legaspi said Philippine exporters should also take advantage of China’s opening of its doors to more foreign goods, having removed tariffs for more than 90% of its tariff lines under the Asean-China FTA (ACFTA).

The Asean-Korea FTA (AKFTA) also provides for zero tariffs for more than 90% of Korea’s tariff lines, offering opportunities for Philippine agricultural exports.

“They’re looking at organic products, marine products, fresh and processed fruits, frozen vegetables, sauces, confectionery, and alcoholic beverages,” said Legaspi.

She added that the Philippines is planning to seek more preferential treatment for its exports to Korea.

Australia and New Zealand together offer the most liberalized trading terms under the ASEAN-Australia-New Zealand FTA (AANZFTA).

“By 2020, all products exported to these countries would be at zero tariffs for as long as we comply with the rules of origin (ROO),” Legaspi said.

Meanwhile, the Philippines has two FTAs with Japan that afford exporters “two complementary avenues to penetrate the Japanese market.”

In addition, the Philippines is eyeing the opportunity for Filipino suppliers to access the market further with the hosting of the Tokyo Olympics by Japan in 2020.

As for India, Legaspi says this big country with a population of 1.25 billion should be among the new target markets of Filipino exporters.

The country has already opened 94% of its market to existing Philippine exports under the Asean-India FTA.

Another big opportunity is opening up with the ratification by the Philippine Senate of the PH-EFTA FTA last March 5, the Philippines’ second bilateral FTA after Japan. EFTA comprises Iceland, Liechtenstein, Norway, and Switzerland.

Legaspi said the new FTA “provides for dutyfree market access to all industrial and fisheries products to the EFTA member states with minimal ROO upon ratification.”

“They have offered zero tariffs on all industrial goods including fish and fish products upon entry into force,” she said.