Trump impeachment may affect possible FTA with US

Talks that US President Donald Trump may be impeached could affect the move to a have a possible free trade agreement (FTA) between the US and the Philippines, a Cabinet official said.

Trade Secretary Ramon Lopez said recent developments in the US may affect the discussions on having a bilateral trade agreement between the two countries.

“I would say it might [affect] because the speed now of the discussion of FTA is triggered also by the administration of Trump, of good relationship of two leaders. So, in a way, it is being facilitated, we believe,” he said when asked whether speculations that Trump may be impeached would have an effect on the possible FTA.

There is talk on a possible Trump impeachment as his former lawyer Michael Cohen and former campaign chairman Paul Manafort were found guilty of financial crimes.

Cohen pleaded guilty to committing campaign finance violations for arranging hush payments during the 2016 presidential campaign to two women who allegedly had affairs with Trump.

Manafort, meanwhile, was found guilty of tax and bank fraud charges.

While political events taking place in the US may have an effect on the possible FTA with the Philippines, Lopez said the potential economic benefits of having a deal would have greater weight.

“It makes economic sense also for them to have an FTA with the Philippines, a socalled long time ally…More so they should elevate the kind of economic relationship we have,” he said.

While the Philippines is currently a beneficiary of the US Generalized System of Preferences or a program which eliminates duties for products from beneficiary countries and territories entering the US, Lopez said having a bilateral trade deal would have more long term effects and benefits.

“FTA is long term. It is not subject to renewal and more encompassing,” Lopez said.

He said a bilateral trade agreement with the US would also help attract more investments to the Philippines.

“There would be a push for investments and job creation,” he said.

Both the US and the Philippines have expressed openness to enter into a bilateral trade agreement, although negotiations have yet to start.

Trade Undersecretary Ceferino Rodolfo has said, the Philippines is completing domestic processes to determine if it would start FTA negotiations with the US.

US Trade Representative Robert Lighthizer, who testified before a US Senate appropriations subcommittee last month, also said he would want a trade deal between the US and the Philippines.