DTI to fasttrack study on free trade agreement between RP and US

Trade and Industry Secretary Juan B. Santos has agreed to accelerate the completion of a cost-benefit analysis study by the Philippine Institute for Development Studies (PIDS) regarding a Free Trade Agreement (FTA) between the Philippines and the United States.

Santos agreed to the acceleration following a meeting with US Deputy Secretary of State Robert Zoellick wherein the US panel cited a US study claiming that the Philippines stands to see a three percent growth in gross domestic product (GDP) and three percent growth in trade if it enters into an FTA with the US.

Santos informed Zoellick that he would still want to validate the US study by having the PIDS complete its own analysis of an FTA.

Last March, Santos had stated that he sees no need to rush an FTA with the United States.

According to Santos, an FTA with the US at this time may even be "premature."

Instead, Santos pointed out, the Philippines has a more beneficial trade relation with its ASEAN neighbors as well as with Japan and China.

In fact, Santos said, the Philippines has more trade with Japan than the US and is in the midst of negotiations with an FTA with Japan.

The Philippines already has an FTA with ASEAN and China.

Furthermore, Santos said, the Philippine private sector does not seem keen on an FTA with the US.

In fact, Santos has urged the American Chamber of Commerce of the Philippines to make representation with the US if they believe that an RP-US FTA is beneficial.

The help of the private sector, Santos explained, is necessary so that they can identify which areas can be opened up for liberalization.

Santos had met last March with US Assistant Trade Representative Barbara Weisel who, unlike her other colleagues, appeared eager to proceed with an FTA between the US and the Philippines.

Previously, US Embassy officials appeared cool to an FTA pointing out that the US has set the criteria that countries that enter into an FTA with the US "must be able to live up to their commitment."

US Embassy officials had also said that actions that must be taken by countries interested in entering into an FTA with the US would include dealing with corruption, tightening up on intellectual property rights and human rights.

One area which the US feels the Philippines has not yet been able to adequately address is its intellectual property right (IPR) compliance.

Santos assured that the government is addressing the IPR issues.