By Catherine N. Pillas
The Czech Republic on Wednesday expressed its full support for the forging of a free-trade agreement (FTA) between the Philippines and the European Union (EU), saying this will further spur international trade.
“The Czech Republic is very much supportive of market access. That’s why we’re supportive of the dialogues for the EU-GSP+ for the Philippines and the FTA,” said Czech Deputy Minister for Foreign Affairs Martin Tlapa during a business opportunity briefing on Tuesday.
The briefing hosted by the Philippine Chamber of Commerce and Industry (PCCI) focused on available business opportunities in the Philippines for Czech businessmen. The Department of Trade and Industry (DTI) announced last December the launch of negotiations for an FTA between the Philippines and EU, three years after going through the so-called scoping stage.
The Czech Republic, which is part of the 28-member bloc, stands to gain from an FTA between the Philippines and EU, as its economy is heavily reliant on global trade.
Tlapa said it has urged the EU to consider the FTA with the Philippines as a “high-priority deal” even as it continues to negotiate with the US for the Transatlantic Trade and Investment Partnership (TTIP).
He said the two parties must strike a “balanced” trade deal which would entail the opening up of the Philippines’ public procurement sector and the expansion of access to the local farm sector.
The FTA will also force the Philippines to improve its product standards, which is considered an important component of the FTA with the EU. Currently, Czech firm Home Credit Group has invested in the country’s financial services sector. Total bilateral trade between the Czech Republic and the Philippines, which stands at $400 million, has more potential for growth, according to PCCI President George Barcelon.
Possible synergies
During the business briefing of the Czech Business Mission, Tlapa outlined his country’s strengths and competencies.
Aside from posting the third-highest growth rate in the EU in the second quarter of 2015, the Czech Republic has expertise in the automotive industry, allowing it to attract investments from major auto makers.
Three major car makers—Volkswagen Group, the TPCA (a Toyota/PSA joint venture), and Hyundai—have operations in the Central European nation. Tlapa said Czech businessmen are keen on forging partnerships with Philippine companies in following sectors: rail and transport; energy; agriculture and food; and mechanical engineering.
He said the Czech Republic is specifically keen on rail and transport, given the weak state of the country’s infrastructure.
Tlapa said aerospace is another potential area for cooperation between local and Czech businessmen. He said his country currently manufactures small- and medium-sized aircraft and has a long history of manufacturing and hosting aircraft maintenance, repair and operations.
The Philippines, which exports mostly electronic components used for assembly to the central European country, currently enjoys a trade surplus with the Czech Republic. The Czech Republic, meanwhile, supplies the Philippines with materials in the manufacture of glass; accessories of trailers and vehicles; and milk cream.
1 comment
Still it points out… In the name of theory of diplomacy the vision of good faction is that a mere myriad effect to the necessities of people in resources that must be overcome.