The Philippine FTA Experience

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The Philippine FTA Experience
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STATUS OF JAPAN-PHILIPPINES ECONOMIC PARTNERSHIP
AGREEMENT (JPEPA)
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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

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• 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

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• CHAPTER LEAD AGENCY
• Trade in Goods 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

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• Investment BOI
• Competition Policy Tariff Commission
• Mutual Recognition Bureau of Product Std
• Government Procurement Dept 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

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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

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Parameters

• Respective laws, rules and regulations
• Treaties acceded to (no TRIPS )
• No specific mention of treaties not yet acceded

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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

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Prospects and Challenges for a Philippines-US FTA

• Exploring Our Options

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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

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The RP-US FTA research project

• General Objectives
• 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

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RP-US FTA Research Project Organizational
Structure
DTI
PIDS
Steering Committee Members DTI, Chair DFA
PIDS Academe (DLSU-AKI) Bus. Rep
(PhilExport) Sectoral (NCRFW)
RP-US FTA SC
RP-US FTA REDC
PASCN Secretariat
Research
Information and Dissemination
Networking
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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

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Three Levels of Study
On the whole economy
Sectoral concerns
Special issues
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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

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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

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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,
  UAP
• Expanding and Sustaining RP US Linkages in
  Business Process Outsourcing Ceferino Rodolfo,
  UAP
• 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

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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, UAP
• The Politico-Strategic Dimension of the US
  Proposal for an FTA Dr. Renato de Castro, DLSU
  Maria Castanos, FSI

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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

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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.

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Thank You.
website http//rp_us.pids.gov.ph email
pascn_at_pidsnet.pids.gov.ph