PH, US open discussions on FTA

DEPARTMENT of Trade and Industry (DTI) Secretary Ramon M. Lopez met with Deputy United States Trade Representative Jeffrey D. Gerrish and his delegation to further trade and investment ties and continue with the exploratory discussions for a possible free trade agreement (FTA) between the Philippines and the United States (US).

The two countries agreed that an FTA would be a win for both countries, as both acknowledge there are already opportunities under the current Trade and Investment Framework Agreement (TIFA) that both teams can work on to facilitate immediately more trade.

This follows the meeting of President Rodrigo Roa Duterte and US President Donald Trump during the 2017 Asean Summit and the statement of USTR Robert Lighthizer, acknowledging the need to strengthen bilateral relations with countries in the Asia Pacific, including PH during a Congressional hearing last March.

“We are looking forward to exploring a free trade agreement with the US Meanwhile, we can simultaneously pursue low-hanging opportunities like the existing TIFA and the privileges under the Generalized System of Preferences (GSP) of the US,” Lopez said.

Philippines currently enjoys preferential duty-free entry to the US through its GSP scheme. In 2017, GSP exports accounts for 17.6% of PH exports to the US, valued at US$ 1.492 billion. Leading GSP exports include tires, sugar, electronics, and fruit and vegetable juices. The GSP was also recently renewed to be effective for three years, instead of the annual review. DTI