THE PHILIPPINES is exploring free trade agreements (FTAs) with Canada and Chile, as well as other countries in Latin America (LatAm) and Africa, the Department of Trade and Industry (DTI) said.
Trade Undersecretary for International Trade Group Allan B. Gepty said that the DTI is looking at free trade deals with Latin American and African countries in answer to the President’s call to expand trade with more countries.
Mr. Gepty told a news briefing on Friday that the DTI is seeing progress in exploring an FTA with Chile.
“We just need to update the feasibility study of having a bilateral FTA with Chile, and hopefully within the year we will be able to formally announce the result of the study,” he said. “But most probably it would turn out positive.”
In terms of products, Mr. Gepty said that the FTA is expected to expand market access for Philippine agricultural and processed products, as well as semiconductors. It will also give the Philippines more access to Chile’s wine products, among others.
“But more than the goods, what is also important in this engagement with Chile would be on the services and investment side,” he said.
“They are also interested in critical minerals and, of course, our professionals in research, development, and innovation, which Chile is known for,” he added.
Meanwhile, Mr. Gepty said that talks around the FTA with Canada have already started but are still in the exploratory stage.
He said the Philippines is also looking to accede to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The CPTPP is an FTA between 11 countries, which are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.
Last year, the United Kingdom (UK) signed the protocol of accession to join the CPTPP, and its entry into force is expected by the second half of 2024.
“We’re pursuing that, and we’re eyeing, hopefully, to at least formally apply for it this year. It’s a good FTA for the Philippines in the sense that once we become a party of the CPTPP, the value added here, in terms of market access, will be Chile, Mexico, Peru, and also Canada,” he said.
“And now that the UK is there, there is more reason for us to join so that our market access will be more comprehensive,” he added.
Mr. Gepty said the International Trade Group is still looking at possible candidates for an FTA in Africa.
“But this is for the medium-term direction. So, we will still have to conduct feasibility studies on that,” he added.
The Philippines is part of multilateral FTAs, including the Regional Comprehensive Economic Partnership, the European Free Trade Association, and the ASEAN+6 FTA.
It also has bilateral agreements with Japan and South Korea, with the latter waiting to be ratified.
Meanwhile, there are ongoing negotiations for the European Union-Philippines FTA and the Philippines-United Arab Emirates Comprehensive Economic Partnership Agreement. — Justine Irish D. Tabile