DTI: Upgraded AANZFTA to benefit MSMES
THE inclusion of a chapter on trade and sustainable development and micro, small, and medium enterprises (MSMES) in the Asean-australia-new Zealand Free Trade Area (AANZFTA) will fast-track the integration of businesses into the global value chain, according to the Department of Trade and Industry (DTI).
Trade Secretary Alfredo E. Pascual also said the conclusion of the upgrade negotiations marks another milestone for both Asean and Australia-new Zealand.
According to the DTI, Asean, Australia and New Zealand introduced the inclusion of new Chapters on Government Procurement, MSMES, and Trade and Sustainable Development to facilitate growth anchored on an inclusive and sustainable regional economy.
“With the inclusion of the new chapters, the upgraded AANZFTA is viewed to benefit both regions in a broad spectrum of areas. Among others, the agreement will accelerate supply chain integration and resilience; ensure a smooth flow of essential goods during crises; deepen services and investment liberalization; and support electronic commerce and digital transformation,” the DTI said in a statement on Monday.
The DTI said two years after formally launching upgrade negotiations in September 2020, the substantial conclusion conveys Asean, Australia and New Zealand ’s resolve to accelerate post-pandemic recovery.
As for realizing the “real benefits” of the upgraded AANZFTA, the DTI said it depends upon the early signing and timely implementation. Hence, the Trade department said the parties aim to sign the second protocol to amend the agreement establishing the AANZFTA in 2023.
According to the DTI, Australia and New Zealand were the Philippines’s top 16th and 28th trading partners in 2021, respectively, with a combined total trade value of P2.64 billion.
In addition, the agency noted, Australia was the country’s top 14th origin of investment inf lows in 2021, amounting to P664.32 million.
The AANZFTA entered into force for the Philippines in 2010. It is the first region-to-region trade agreement for Asean, Australia, and New Zealand and remains as Asean’s “most ambitious” single undertaking since it embarked on an outward-looking economic regime to integrate ASEAN into the global economy.
According to the AANZFTA web site, the 12 parties to the said free trade area include Australia, Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, New Zealand, Philippines, Singapore, Thailand, and Vietnam.