RP won’t benefit fully from FTA with Australia, NZ

The Philippines may not substantially benefit from a free trade agreement (FTA) with Australia and New Zealand, according to Riza Bernabe, a research fellow of Centro Saka Inc., a non-government organization.

Bernabe, who recently conducted a study of the country’s bilateral and trade commitments, pointed out that, it is not tariff that is preventing Philippine products from entering Australia and New Zealand. It is the imposition of stringent phytosanitary measures.

Australia, in fact, has been able to effectively block Philippine pineapple exports due to a phytosanitary rule that requires "decrowning" of fresh pineapples. Australia also has tough phytosanitary requirements for mango and banana.

Bernabe also noted that the Philippine government is entering into a lot of bilateral and regional trade agreements without first providing the necessary public investment and domestic policy support to the agricultural sectors that stand to be most affected by the various agreements.

The government, Bernabe said, should provide public investment that would improve the agricultural sector’s productivity and competitiveness.

She added that "the country’s participation in each RTA should always be accompanied by a Competitiveness Enhancement Plan (CEP) which would indicate the necessary public investment as well as domestic policy support necessary to help improve competitiveness in the target market."

The plan, Bernabe said, should help the Philippines maximize the gains from each trade agreement and the "implementation of market access concessions should be calibrated vis-à-vis the CEP."