Recto floats FTA with US executives
Finance Secretary Ralph Recto has floated the potential of a free trade agreement (FTA) with the United States as he seeks more economic and investment opportunities with the world’s biggest economy.
In a statement, the Department of Finance (DOF) said Recto recently met with US officials, led by Treasury Department deputy assistant secretary for Asia Robert Kaproth, to discuss efforts that could strengthen ties and boost economic and investment cooperation between the two countries.
During the meeting, Recto brought up the potential of having an FTA with the US and further enhancing security and military ties.
The DOF, however, did not elaborate on how the US officials responded to Recto’s bringing up the topic.
US Trade Representative Ambassador Katherine Tai said in April last year that a bilateral FTA is not part of ongoing negotiations between the two nations.
Nonetheless, the DOF said US officials expressed optimism about further deepening partnership with the Philippines, highlighting the country’s young, English-speaking population, as well as macroeconomic fundamentals that make it a viable investment destination.
The US likewise expressed interest in helping the Philippines establish an investment mechanism to help the country screen foreign direct investments for national security purposes.
The Philippines, for its part, committed to expedite addressing investor concerns amid economic liberalization laws that would further facilitate ease of doing business in the country.
Recto also noted that the government has improved its public-private partnership (PPP) framework through the enactment of the PPP Code, which opens up investment opportunities in the infrastructure sector.
The administration’s flagship Build Better More infrastructure program consists of 198 projects with an indicative total investment requirement of P8.78 trillion.
Among the priority sectors for infrastructure investments include renewable energy, water, airports, seaports, roads, tollways and railways.
Further, Recto said the government is studying the amendments to the Corporate Recovery and Tax Incentives for Enterprises Act to improve the law and further tailor-fit the interests of investors in strategic investments.
The Finance chief assured the US that their partnership with the Philippines would be a two-way street and emphasized the importance of consistent dialogue.
A high-level delegation from the US government is expected to visit the Philippines in March to further strengthen bilateral ties between the two countries.