US rejects RP bid for preferential pact on garments

The Philippine garments sector’s hopes of a preferential agreement with the United States that would allow special access for Philippine-made garments and textiles to the US market has been dashed with the confirmation by a top US trade official that such a deal is not about to materialize.

A sectoral agreement on garments between the United States and the Philippines is not likely, according to Assistant US Trade Representative Barbara Weisel.

In a press conference, Weisel admitted that "a sectoral agreement on garments is extremely difficult at this point."

However, Weisel said, the US is still looking at other options it can offer to the Philippines.

At the same time, Weisel disclosed that the US and the Association of Southeast Asian Nations (ASEAN) is set to conclude a Trade and Investments Facilitation Agreement (TIFA) which could be used as a step towards an eventual ASEAN-US Free Trade Agreement.

Weisel was in the country to attend the two-day ASEAN Economic Ministers (AEM) Retreat originally scheduled to be held in Boracay but was hurriedly moved to the Mandarin Hotel in Manila.

Aside from meeting with the AEM, Weisel also took time to visit the Clark Special Economic Zone, meet with American and Filipino businessmen, Trade and Industry officials and Intellectual Property Office Director-General Adrian Cristobal Jr.

Weisel also met with former Trade Secretary and now Senator Manuel A. Roxas III.

Following the removal of the garments quota system to the US, the Philippines has been trying to seek some sort of preferential agreement that could allow special access to the US market for Philippine garment products in the face of overwhelming competition from China.

The Philippine garments sector had even secured the services of an American lobby firm to explore the chances of the Philippines securing a deal for its garments exports to the US.

The local garments sector has likewise been working with the Department of Trade and Industry (DTI) to initiate bilateral talks with the US Government regarding preferential access for Philippine-made garments to the US.

Following a series of meetings in the US, the Philippine panel composed of government and private sector negotiators reported that the US prefers a comprehensive FTA with the Philippines rather than a sectoral agreement on garments only.

Philippine Chamber of Commerce and Industry (PCCI) president and concurrent Confederation of Garments Exporters (CONGEP) chairman Donald Dee, who was part of an exploratory mission that visited the United States early this year for talks with several high-ranking US officials, said that the US officials indicated their continuing preference for a comprehensive FTA in spite of several major stumbling blocks that include intellectual property rights (IPR) and agricultural access issues.

The Philippines, Dee said, would be interested in an FTA in terms of attracting new investments rather than for trade benefits.

The US has already secured an FTA with Singapore and is in talks with Thailand and Malaysia.

Weisel explained that the conclusion of an ASEAN-US TIFA could be used for a number of dialogues including an eventual FTA.

However, the soon to be concluded TIFA, Weisel clarified, does not involve market access at this time and is intended mainly to support the ASEAN move toward integration of its market.