RP-US free trade agreement studied

The US-ASEAN Business Council and the RP-US Business Council have agreed on a possible free trade agreement between the Philippines and the US.

The two business organizations yesterday signed a framework agreement to undertake a study, to be completed by December this year, that would look into the feasibility of a free trade agreement between the Philippines and the US.

If the study supports a free trade agreement, the two councils could then help in lobbying for such an agreement, sources said.

Aside from conducting a study on a free trade agreement, the two councils also agreed to cooperate on a number of issues which include: Developing the Philippines as a regional hub for transportation; promoting Philippine human resources in e-commerce; energy development; promoting the Philippines as a tourist destination; and helping push for increased tuna imports from the Philippines.

US-ASEAN Business Council president Ernest Z. Bower disclosed that the US is interested in looking for countries for possible trade agreements.

He said the US has already started talks with Singapore and the Philippines is the next country being eyed for such talks.

"The Philippines is being noted for being at the forefront of opening up its market," Bower said.

"The study would look at the building blocks for a free trade agreement, address the hard areas and see what benefits it would provide for both countries," he explained.

The US business mission, Bowers said, was impressed that President Arroyo is "very much engaged in addressing the peace and order problem."