Status of Philippine Free Trade Agreements

7/31/2019 Status of Philippine Free Trade Agreements

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Free Trade Agreements (FTAs) of the Philippines

Status and updates


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PRE

SENTATIONOUTL

INE

Content

I. Overview

1. Philippine Mandate

2. Rationale

II. RP Free Trade Agreements

1. ASEAN FTA

2. ASEAN China FTA

3. ASEAN Japan CEP

4. ASEAN Korea FTA5. ASEAN ANZ FTA

6. ASEAN India FTA

7. ASEAN EU FTA


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OV

ERVIEW

RP Mandate

The Philippine Medium and Long Term Development PlansThe Philippine Medium and Long Term Development Plans

Appropriate international engagements, including Free TradeAgreements (FTAs) and similar arrangements.

Such endeavors shall increasingly take place in the context of ourmembership in the ASEAN

Executive Orders 133 and 292Executive Orders 133 and 292

DTI to spearhead such engagements

Reasons for RP Participation

Means to promote trade andMeans to promote trade and

investment flowsinvestment flows

Ensure continued and enhancedEnsure continued and enhancedmarket access for ASEANmarket access for ASEANs exportss exports

Draw greater and sustained inflowsDraw greater and sustained inflowsof FDIof FDI

Mutual support on issues ofMutual support on issues ofcommon interest in internationalcommon interest in international forafora

Maintain competitivenessMaintain competitiveness Portfolio diversificationPortfolio diversification

CrossCross--border industrialborder industrialcomplementationcomplementation

Advantages of geographicAdvantages of geographic

proximityproximity Leverage inLeverage in FTAsFTAs


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FTAs of the Philippines


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AFTA

ASEAN Free Trade Area

The Only Full FTA that the Philippines is Party toThe Only Full FTA that the Philippines is Party to

IntraIntra--ASEAN Integration is composed of:ASEAN Integration is composed of:

1. Liberalization1. Liberalization Common Effective Preferential Tariff (CEPT) and Priority IntegraCommon Effective Preferential Tariff (CEPT) and Priority Integrationtion

Sectors (PIS)Sectors (PIS)

ASEAN Framework Agreement on ServicesASEAN Framework Agreement on Services

ASEAN Investment AreaASEAN Investment Area2. Facilitation2. Facilitation

ee--Customs/Single Window; Standardization and Harmonization; multiCustoms/Single Window; Standardization and Harmonization; multi--modal transport; logistics; emodal transport; logistics; e--commercecommerce

3. Cooperation3. Cooperation Bridging Development GapsBridging Development Gaps

SubSub--Regions/Growth AreasRegions/Growth Areas


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AFTA

ASEAN Economic Community (AEC)

One of the three key pillars of the envisaged ASEAN Community End goal of economic regional integration as declared by the ASEANLeaders at the Bali Summit in October 2003 (Bali Concord II)

To be established by 2015 as agreed by the ASEAN Leaders at the 12th

ASEAN Summit

Characteristics of the AEC

These characteristics are inter-related and mutually reinforcing.

A single market and production base

A highly competitive economic region

A region of equitable development

A region fully integrated into the global economy


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AC

FTA

ASEAN - China Free Trade Area

Status Preferential tariff concessions under the Trade in Goods Agreement being

implemented.

ASEAN and China have initiated the process of eliminating non-tariff barriers

(NTBs). First activity is to exchange information on NTMs of both Parties. Trade in Services Agreement including first package of commitments

signed in January 2007. ASEAN and China currently negotiating a secondpackage of improved commitments.

Negotiations on the Investment Agreement have concluded, withagreement scheduled for signing at the ASEAN-DP Summit in early April2009.

Conducted a mid-term review of the TIG Agreement. The mid-term review of

the TIG focused on the implementation of tariff commitments made underthe TIG and the early harvest program, the bilateral trade between ASEANand China prior to and after the implementation of the TIG and the utilizationof the certificates of origin Form E.


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AJCEP

ASEAN Japan Comprehensive Economic Partnership Agreement

Modality on Trade in GoodsModality on Trade in Goods

Normal Track: 10 years upon entry into force

Sensitive Track: 0-5% in 10 years

Cumulative rules of origin

Provisions for possible future negotiations in services and inveProvisions for possible future negotiations in services and investmentstmentnext year; in the meantime, commitments in bilateralnext year; in the meantime, commitments in bilateral EPAsEPAs and BITSand BITS

will applywill apply

Final StagesFinal Stages

All parties have signed as of 12 April 2008

Will enter into force with respect to ratifying parties two months after IORis deposited with secretariat
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AKFTA

ASEAN Korea Free Trade Agreement

1. Trade in Goods now operational

Provides for the substantial reduction/elimination of tariffs and otherbarriers to trade by 2010, with flexibility up to 2012.

It covers the following tracks:

1.Normal Track (2006-2010)2.Sensitive Track (2012-2016)

Bonus: Korea waives reciprocity requirement for $28M RP exports

2. Trade in Services now operational

3. Investment Agreement being negotiated


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AANZFTA

ASEAN Australia New Zealand Free Trade Agreement

Recently signed at the 14thASEAN Summit in Hua Hin Thailand last

February 27, 2009.

A comprehensive single undertaking FTA

Includes:

1. Trade in Goods Chapter (ROO, Customs, SPS, STRACAP, SafeguardChapters)- Normal Track: by 2013- Sensitive Track: 0-5% by 2020

- Exclusion: subject to bilateral negotiations2. Trade in Services (including financial and telecommunication services

annexes)3. Electronic Commerce Chapter4. Movement of Natural Persons Chapter5. Intellectual Property Chapter6. Competition Chapter7. Economic Cooperation Chapter
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AIF

TA

ASEAN India Free Trade Agreement

1. Trade in Goods Agreement

Negotiations for the modality for tariff reduction/elimination for the ASEAN-India FTA completed. However, recent issues have been raised regardingthe implementation of the TIGA which has delayed the signing of theagreement.

2. Trade in Services and Investment Agreement

Simultaneous negotiations for services and investments have started. Thenagain, negotiations have been put on hold given the current situation with

the TIGA.
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AEUFTA

ASEAN European Union Free Trade Agreement

Started exchange of views relating to various FTA elements (guidingprinciples, modalities for tariffs, services and investment liberalization, etc)under the ASEAN-EU FTA.

Has also established seven expert groups (tariffs and non-tariff barriers;ROO; services and establishment; DSM; SPS; TBT and customs and trade

facilitation)

However, negotiations have currently been put on hold given theinvolvement of Myanmar in the FTA. Although both sides are reflecting onpossible ways to move forward (by studying different possible methods of

approach of tackling the FTA).
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Thank you.

The floor is now open for your questions.

Documents

Status of Philippine Free Trade Agreements