The Philippines underscored the need to focus on technological innovation and research and development (R&D) areas, as it bared a new trade strategy with Washington, noting that trade between the two nations should go beyond the “traditional focuses” on tariffs and market access.
In a statement on Monday, the Department of Trade and Industry (DTI) said Trade Undersecretary Rafaelita Aldaba, during the Consumer Electronics Show Trade in Tech Innovation Policy Summit in Las Vegas, Nevada, last January 9, emphasized the need for a “multifaceted” trade strategy in potential negotiations with the United States.
“This approach would extend beyond traditional focuses on tariffs and market access, especially considering the current emphasis on the Indo-Pacific Economic Framework (IPEF) of the US,” DTI said.
The Trade department said Aldaba proposed that any potential free trade agreement (FTA) between the Philippines and the US should “encompass various new trade areas.”
The agency noted that key elements include “advocating for open and fair trade while protecting domestic industries, setting standards and rules, establishing regulatory frameworks that safeguard intellectual property rights, ensuring fair labor standards, promoting sustainable trade practices, and addressing aspects of digital trade, data privacy and cybersecurity.”
Moreover, DTI said the agreement should emphasize technological innovation, research and development (R&D), education, and the integration of “emerging” technologies in trade.
The Philippines is an “active” participant in the IPEF discussions along with Malaysia, Vietnam, Indonesia, Singapore, Thailand, Brunei, Korea, Japan, India, Fiji, Australia, and New Zealand.
The IPEF focuses on supply chains, clean energy, decarbonization, infrastructure, tax and anti-corruption measures.
Aldaba said the DTI also emphasized that IPEF might “redefine” trade policy in the 21st century, marking the US’ re-engagement and leadership in trade across Asia after withdrawing from the Trans-Pacific Partnership.
Meanwhile, to further the collaboration with US, the Trade department noted that the Philippines is engaged with the US State Department in exploring opportunities under the International Technology Security and Innovation (ITSI) Fund, established by CHIPS (Creating Helpful Incentives to Produce Semiconductors) Act.
“This partnership aims to develop and diversify the global semiconductor ecosystem, enhancing the resilience, security, and sustainability of this critical value chain,” DTI said.
Currently, DTI said a “comprehensive” assessment of the Philippine semiconductor ecosystem is underway, examining regulatory frameworks, workforce, and infrastructure needs.
The Trade department said the findings from this assessment would “lay the groundwork for future joint initiatives to advance this vital sector.”
“For the DTI, trade remains a cornerstone of the new industrial strategy, driven by science, technology, and innovation. This strategy aims to cultivate more globally competitive and innovative industries, attract investments, and create high-quality jobs,” the agency said.
“Per Undersecretary Aldaba, trade is instrumental in the dissemination and absorption of new technologies and innovative practices,” DTI added.
The Trade department underscored that forging global trade and investment connections remain an “imperative” as the Philippines integrates new technologies like artificial intelligence, adding that “it stimulates competition and innovation, creating an environment conducive to the flourishing of new ideas, skill enhancement, and faster spread of technologies.”
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