Phl irons out minor kinks in EFTA deal
The Philippines has addressed the problem which has prevented the country from implementing preferential tariffs for products originating in the European Free Trade Association (EFTA) on time.
Trade Secretary Ramon Lopez told The STAR that revised memos have been signed last week and “should be effective soon.”
This, however, means preferential treatment for products originating in the EFTA states — Iceland, Liechtenstein, Norway, and Switzerland — remain pending in the Philippines for the time being.
EFTA earlier said the EFTA-Philippines free trade agreement (FTA), which entered into force on June 1, was not being applied by local authorities due to pending internal procedures.
“Exporters and importers of goods originating in an EFTA state are nevertheless encouraged to try to obtain preferential treatment upon import into the Philippines by claiming such treatment and by providing the necessary documentation, also with a view to obtain possible reimbursement of unduly levied customs duties at a later stage,” the EFTA secretariat earlier said.
Lopez said the delay on the country’s end was due to technical corrections made on the implementing memos.
“Once effective, the FTA is expected to have positive impact on growth and increase trade between EFTA countries and the Philippines. The upside is there, so the sooner the FTA is implemented, the better,” said Joona Selin, executive director of the Nordic Chamber of Commerce of the Philippines, a business group promoting and facilitating trade and investment between the Philippines and the Nordic (Denmark, Finland, Iceland, Norway, Sweden) and Baltic (Estonia, Latvia, Lithuania) countries.
The FTA grants duty-free market access to all industrial and fishery products from the Philippines to the EFTA states.
The country also gains tax incentives on agricultural products, particularly those that are currently being exported to the EFTA member states such as desiccated coconut, prepared or preserved pineapples, and raw cane sugar.
In return, the Philippines grants EFTA countries dutyfree market access on most industrial and fishery products as well as market access on goods such as temperate fruits, mineral and aerated waters, food preparations, chocolate, cheese and wine.