The Department of Trade and Industry (DTI) renewed calls for the establishment of a free trade agreement (FTA) with the United States as the Philippines seeks stronger economic ties, which is seen to benefit the micro, small and medium enterprises (MSMEs).
Trade Secretary Ramon M. Lopez said in a recent virtual event that the Philippines is keen on starting the FTA negotiations with the US. Manila has been seeking to strike a trade accord with Washington to lift tariffs on a number of export products, including clothing products.
“The next step is really how we can elevate it into an FTA so it becomes a longer lasting kind of trade arrangement,” he said.
The Philippines is one of the beneficiaries of Washington’s Generalized System of Preferences (GSP) perks, but the program expired last December 31, 2020. Lopez said they are awaiting the renewal of the program.
The GSP deal is a unilateral preferential trade arrangement by the US to 122 beneficiary developing countries and least developed beneficiary countries, including the Philippines. It aims to promote economic growth, development and trade by providing duty-free market access to about 5,000 products into the US.
“But certainly, it’s [GSP] a very good program that’s been a big help to many marginalized sectors in the country,” he said. “A lot of exporters, a lot of MSMEs who have been part of the global value chain have started to enjoy exporting products.”
Among the products being exported to the US are canned tuna, seaweed, marine products, electronics and coconut-based products, he said.
Meanwhile, Lopez also encouraged American companies to continue investing in the country that can boost job creations.
He cited the following investment opportunities: information technology-business process management, electronics, automotive, electric vehicles, hyperscalers and data centers.
“The Philippines and the United States will always remain strong partners. We aim to be both a valuable contributor to your companies’ global business’ growth, as well as a strong partner in building back towards a better, brighter post-pandemic future,” he said.
Meanwhile, he said the government is finalizing the Strategic Investment Priorities Plan (SIPP), which is a menu of incentives to attract more investments in the country under the Corporate Recovery and Tax Incentives for Enterprises.
The SIPP, Lopez said, has been “based on the key industrial framework that seeks to develop an innovative and inclusive industrialization in the country.”