RP not too keen on free trade pact with EU

The Philippines is not too keen on aggressively pursuing a free trade area (FTA) arrangement with the European Union (EU).

The Philippine position was conveyed recently to EU Trade Commissioner Pascal Lamy by Trade and Industry Secretary Manuel Roxas II during the just-concluded consultation between Southeast Asian trade ministers and the EU at Luan Prabang, Laos.

Earlier, Southeast Asian ministers agreed to a joint measure with the European Union to boost trade between the two groups, possibly paving the way for a free trade pact in the future.

Proposed by Lamy, the agreement is aimed at coordinating regulations, quality standards and other non-tariff issues.

In recent years, the EU has imposed strict controls on poultry and shrimp imports from the region because they contain banned antibiotics, hurting ASEAN exports to Europe.

In 2001, trade between the two regions declined by 3.4 percent from the previous year to $96.36 billion.

However, Roxas cautioned Lamy on aggressively pushing for the start of FTA talks with ASEAN.

Roxas pointed out that the EU should consider the sensitivities that exist with regard to Philippine industry.

"As it is, there is already too much on our FTA plate and there are domestic concerns that this might lead to indigestion for the Philippines," Roxas said.

He stressed that if the EU insists on starting the FTA negotiations with ASEAN, focus should first be placed on issues that deal with rules rather than on those that seek to directly increase reciprocal market access.

Some of the items that may be taken up are technical cooperation on Customs procedures, SPS compliance and other related measures that, although legitimate, could be used as mere restrictions on market access.

However, Lamy said the EU is not ready to enter formal negotiations on free trade with ASEAN until the current round of World Trade Organization talks are completed.