RP ready to engage US in sectoral bilateral free trade talks

The Philippines is ready to officially engage the US on a possible sectoral bilateral free trade agreement, Trade and Industry Secretary Peter B. Favila said yesterday.

However, according to Favila, possible talks will have to wait until after the November US elections.

US government officials, Favila said, are currently preoccupied with the upcoming elections.

Groundwork for a sectoral bilateral free trade agreement had been done by the garments sector which had funded a lobby group in the US to explore the possibility of securing a preferential arrangement for duty-free entry of Philippine-made garments to the US.

Although the US had initially been lukewarm to a comprehensive  FTA with the Philippines, proposals for a more focused sectoral bilateral FTA appears to finally  be gaining some interest, according to the garments sector which has launched several missions to the US to talk to various US legislators and US government agencies concerned.

The Philippine garments sector has not given up  hope on securing a preferential agreement with the US that would allow special access for Philippine-made garments and textiles to the US market even though US officials have already indicated that such an agreement is not forthcoming.

Because of the garments sector’s persistence, the Department of Trade and Industry (DTI) has decided to give its support to the group by allowing Senior Trade Undersecretary Tomas Aquino to accompany the mission at least twice.

Unfortunately, non-government organizations (NGOs) such as the Free Trade Alliance (FTA) are suspicious about the sectoral bilateral FTA.

In fact, the FTA has expressed fear that the Philippines and the US government may be secretly starting negotiations on a so-called sectoral bilateral free trade agreement which would have far-reaching adverse consequences for the Philippines.

In a press conference, FTA executive secretary Dr. Rene Ofreneo pointed out that the government is once again embarking on secret trade negotiations without properly consulting concerned stakeholders.

The conclusion of the Japan-Philippines Economic Partnership Agreement (JPEPA), the FTA warned, is already proof that secretive negotiations only result in flawed agreements that do not adequately protect the concerns of the country.

The FTA, in fact, is clamoring the Senate not to ratify the JPEPA and instead insist on a renegotiation.

Government’s pronouncement that it would include an addendum that there would be no actual trade of hazardous waste is another proof that the JPEPA negotiation was done too hastily and now requires further clarification.

Thus, negotiating a so-called sectoral bilateral free trade agreement with the US supposedly only for the garments and textile sector, the FTA warned, could lead to another disadvantageous agreement for the Philippines especially since there is already mention of possible trade offs  on wheat and soybean as well as intellectual property rights and patents.

The US, the FTA cautioned, is trying to push for bilateral trade negotiations to get around the safety provisions and conditionalities built into World Trade Organization (WTO) agreements.

The stalled WTO talks, in fact, the FTA said is being used by such countries as Japan and the US to negotiate bilateral agreements to their advantage.

The JPEPA, the FTA said, was able to effectively allow Japan to negotiate with the Philippines the so-called Singapore issues covering investments, government procurement, trade facilitation and competition policy, which was set aside in the stalled WTO talks.

Dr. Ofreneo expressed suspicion that the supposedly private sector-led sectoral bilateral free trade talks may be used by the US to secure important concessions on market access for its agricultural products such as wheat and soybean as well as for the strict implementation of IPR and patent restrictions primarily affecting pharmaceutical products.

The Philippine agricultural sector as well as the ability of the country to produce or secure cheap medicines and drugs would be the casualties of a lopsided sectoral bilateral free trade agreement, the FTA said.