Transcript Opportunities and Challenges for a Philippines

The Philippine
FTA Experience
STATUS OF JAPAN-PHILIPPINES
ECONOMIC PARTNERSHIP AGREEMENT
(JPEPA)
Background
 January 2002 – PM Koizumi proposed the “Initiative for
Japan-ASEAN Comprehensive Economic Partnership”
 May 2002 – Pres. Arroyo proposed to set up a Working
Group
 August 2002 – Informal Consultations
 2002 to 2003 – Working Group and Joint Committee
meetings
 May 2003 – Creation of Phil. Coordinating Committee,
with DFA USec for International Economic Relations
and DTI Usec for International Trade as Co-Chairs
 November 2003 – Presentation of study by the Phil.
Institute for Development Studies
 February 2004 to July 2005 – Formal negotiating
sessions
 July to October 2005– Legal Review
CHAPTER
 Trade in Goods
LEAD AGENCY
Board of Investments
Dept of Agriculture
 Rules of Origin
BOI
 Customs Procedures
Bureau of Customs
 Paperless Trading
BOC
 Trade in Services

National Economic &
Development Authority
 Movement of Natural Persons
Dept of Labor &
Employment
• Investment
BOI
• Competition Policy
Tariff Commission
• Mutual Recognition
Bureau of Product Std
• Government ProcurementDept of Budget & Mgt
• Intellectual Property
IPOPhil
• Bilateral Econ. Cooperation
NEDA
• Improvement of Bus. Environ.
Dept of Trade & Ind
• General & Final Provisions
Dept of Justice; DFA
Basic Principles
 Comprehensive & substantial liberalization of bilateral
trade & investment
 Enhancement of mutual interests
 Consistency with WTO
 Take into account the economic situations of both
countries & ASEAN-Japan Comprehensive Economic
Partnership
Parameters
Respective laws, rules and regulations
 Treaties acceded to (no TRIPS +)
 No specific mention of treaties not yet
acceded
EXPECTED BENEFITS
• Increase RP real GDP by 1.73% to 3.03%
•
Expansion in exports
• goods: agricultural, industrial
• professional services
•
Increased investments and technology transfer
• electronics, automotives; sugar
•
Improved business environment for jobs and income
generation
Prospects and Challenges for a
Philippines-US FTA
Exploring Our Options
Background
• Trade and Investment Framework Agreement
(TIFA) (MOU signed in1989)
• Enterprise for ASEAN Initiative (EAI)
• launched by US President George Bush on October
26, 2002
• US and individual ASEAN countries will jointly
determine if and when they are ready to launch FTA
negotiations
• US-Singapore FTA
• Signed May 6, 2003
• 1st US FTA with an Asian nation and 1st FTA signed
by Bush
• Ongoing US FTA Negotiations
• Taiwan, Thailand, Indonesia, Japan and South
Korea
The RP-US FTA research project
General Objectives
(1) To conduct an independent research on the
feasibility and desirability of establishing RP-US
FTA
(2) To provide inputs for negotiation should a FTA
initiative push through
(3) To encourage and facilitate networking activities
in support of these objectives
RP-US FTA Research Project Organizational
Structure
Steering Committee
Members:
DTI, Chair
DFA
PIDS
Academe (DLSU-AKI)
Bus. Rep (PhilExport)
Sectoral (NCRFW)
Research
PIDS
DTI
RP-US FTA SC
RP-US FTA REDC
PASCN Secretariat
Networking
Information and
Dissemination
Basic Guidelines
• Should be driven/guided by our own reform
objectives
– Global competitiveness
– Sustainable growth
– Resource allocation efficiency
– Poverty reduction
• Keep within the principles of multilateralism
– Ideal approach to bring about optimum
welfare
Three Levels of Study
On the whole economy
Sectoral concerns
Special issues
Studies undertaken
A. Impact analysis on the whole economy
 Overview of the Philippine-US economic
relationship: Situationer Dr. Erlinda Medalla, PIDS
 The Philippines – US FTA: A CGE Analysis
Dr. Caesar Cororaton, PIDS
Studies undertaken
B. Impact analysis on specific sectors/concerns
 Agricultural Trade between the Philippines and
the US: Status, Issues and Prospects Dr. Liborio
Cabanilla, UPLB
 Impact of a Philippines – US FTA: The Case of
Agriculture Dr. Liborio Cabanilla & U-Primo Rodriguez, UPLB
 Impact of and Prospects of Bilateral Services
Liberalization Agreement Dr. Gloria Pasadilla, PIDS
 Implications of an RP –US FTA on the
Philippine Financial Services Industry Dr Leila
Calderon- Kabigting, DLSU
 Issues and Prospects on the Movement of
Natural Persons and Human Capital
Development in the Philippine-American
Economic Relations Dr. Tereso Tullao, DLSU
Studies undertaken
B. Impact analysis on specific sectors/concerns
 Assessment of Readiness and Logistics
Infrastructure of the Philippine Garments
Industry Dr. Emilio Antonio & Cherry Lyn Rodolfo, UA&P
 Expanding and Sustaining RP – US Linkages in
Business Process Outsourcing Ceferino Rodolfo, UA&P
 Enhancing and Deepening of the
Competitiveness of the Philippine Electronics
Industry Dr. Myrna Austria, DLSU
 Impact and Potential for Industrial Goods/
Manufactures Fita Aldaba, PIDS
Studies undertaken
C. Special Studies

An Analysis of Existing and Potential US FTAs and
Defining Philippine Strategy for Negotiation Atty. Sedfrey
Candelaria & Atty. Anthony Abad, AdMU
Specific Legal Issues on the Proposed Philippines –
US Free Trade Agreement (FTA): Politico-Legislative
Perspective Atty. Sedfrey Candelaria & Dr. Victor Venida, AdMU
 WTO Related Concerns: Government Procurement,
Competition Policy and Trade Remedies Atty Jeremy

Gatdula

Talking Points on Intellectual Property Rights
Protection for RP-US FTA Negotiation Atty. Delia Tantuico,
UA&P

The Politico-Strategic Dimension of the US’ Proposal
for an FTA Dr. Renato de Castro, DLSU & Maria Castanos, FSI
Main considerations
• Impact on the economy
• Political
– Political-strategic ramifications
– Gainers and losers
• Key issues
– Bilateral (both countries)
– Internal (domestic)
– Across sectors
• Negotiating strategy
– Very tricky and complicated
– Question of resources
Next Steps
• Need to continue doing our homework
– More consultations
– Involve private sector
– Develop coalition
– Keep watch on other FTA developments
– Lessons from JPEPA experience
• If FTA is pursued, need strong negotiating
panel
• The process is as important.
Thank You.
website: http://rp_us.pids.gov.ph
email: [email protected]