PHL to keep pushing formal free-trade accord with US
THE Philippines remains open to formalizing trade relations with the United States, according to Trade Secretary Alfredo E. Pascual.
He said this after US Trade Representative Katherine Tai said at a recent roundtable meeting that the US is not keen on negotiating the “traditional” free trade agreement (FTA) at the moment.
“The important thing is we’re not closing the door to formalizing trade relations, a formal trade relation between the Philippines and the United States. That is the important thing,” Pascual told reporters on the sidelines of an event titled, “Mapping the Investment Ecosystem” organized by the Management Association of the Philippines (MAP) on Wednesday in Taguig City.
Reports quoted Tai as saying that in terms of a more “traditional” FTA, the US is not currently negotiating any such agreements with trading partners in particular, because “we do not see that traditional program being appropriate for the types of challenges and opportunities that we are facing right now.”
Instead, the US Trade official zeroed in on the Us-led Indo-pacific Economic Framework (IPEF), noting that the IPEF is “one of our highest priorities right now and it is really important to us that the Philippines is at the table and participating.”
In response to Tai’s remark, Pascual said, “She cannot say otherwise because their President has already made that pronouncement that there would be no FTAS during his term. She is just voicing that and we understand.”
In fact, Pascual said, “we had a discussion on this and we understand where she is coming from.” But, Pascual emphasized that “it cannot prevent us from further pushing.”
The Department of Trade and Industry (DTI) earlier expressed a desire to pursue a free trade agreement with the United States, noting this will be a “more binding and permanent mechanism to lock in market access preferences and other binding commitments to expand trade and investment opportunities between our two countries.”
Meanwhile, with the United States shifting its focus to the IPEF, Pascual said, “It is the platform we’re using to push for this formalized trade relations between the Philippines and the United States.”
While IPEF is not a trade agreement which covers market access, “it provides a way of addressing certain process constraints,” he explained.
In May 2022, the DTI announced that the Philippines, along with 13 other countries in the Indo-pacific region and the United States, have launched the process to establish the IPEF for Prosperity.
Nations joining the United States in the Indo-pacific Economic Framework are Australia, Brunei Darussalam, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, Vietnam and Fiji.
These countries n the Indo-pacific region recognized that the Covid-19 pandemic underscored the importance of working closely together to ensure that economic recovery and advancement are grounded in resilience, sustainability and inclusivity.
The countries collectively said the pandemic showed the significance of strengthening economic competitiveness and cooperation and securing critical supply chains, while stimulating job growth and improving economic opportunities.