Envoy sees need for Phl to join regional trade bloc

MANILA - Here's another reason for the Philippines to be scared of being overtaken by Vietnam.

The former communist country is one of the first members of what could be one of the most important economic blocs in the future.

The Trans- Pacific Partnership has 9 members so far, including the U.S., Chile, Peru, Singapore, Australia, New Zealand, Malaysia, Brunei and Vietnam.

Three major economies are also in talks to join: Japan, Mexico and Canada.

And it's projected to get bigger.

“The TPP countries have a shared goal, that is to include additional countries beyond the current 9 in order to eventually include a region that represents more than half of global output and more than 40% of world trade," U.S. Deputy Trade Representative Demetrios Marantis said in a speech to business groups in Manila.

Philippine Ambassador to the U.S. Jose Cuisia said the country needs to be part of it.

“We cannot afford not to be a member of this very important regional trade bloc, because they will enjoy free trade among the member countries,” Cuisia told reporters before Marantis’ speech.

“So if we are competing against Vietnam, for example, in the garments industry, their garments can enter the U.S. market duty free and ours will not be duty free. So right away were at a disadvantage.”

The price of entry is reviewing and possibly easing -- or even removing -- restrictions on foreign ownership in industries such as media and telecoms, natural resources and property.

But moves to revise economic provisions of the constitution has fired up opposing political forces in the past, sometimes because it's linked to removing term limits.

“The policymakers will have to make that decision because it’s not conceivable to have the Philippines outside the TPP if we want our business sector to remain competitive,” Cuisia said. “If we don’t mind being laggards then of course we don’t have to be a member of TPP.” (Wires)