Philippines, Australia to discuss trade priorities

MANILA, Philippines – The Department of Trade and Industry (DTI) is looking at getting more investments from Australia and improving trade relations between the two countries.

Trade Secretary Gregory L. Domingo is in Australia this week to discuss trade priorities and opportunities between the Philippines and Australia.

The Philippine delegation will also attend business meetings together with the Philippine-Australia Business Council and several companies engaged in IT-BPO, gifts and houseware, and energy. The trade delegation will also discuss other opportunities with Australia under the government’s Private Public Partnership Program. Australia has been supportive of the Philippines’ PPP program through capacity building initiatives and other technical assistance.

Domingo noted the positive reception of local exporters to the ASEAN Australia-New Zealand Free Trade Agreement (AANZFTA). Data from the AANZFTA Joint Committee showed a remarkable 26 percent utilization rate of the agreement after a year and half of its implementation. Significant tariff cuts scheduled in 2012 and 2013 are expected to further boost the utilization of AANZFTA.

The AANZFTA covers over 20 percent of Australia’s merchandise trade, worth over $86 billion. The Agreement covers not just trade in goods but also services, investment, intellectual property, e-commerce, entry of business people, and economic cooperation. The agreement grants zero tariffs for all Philippine exports to Australia and New Zealand, with 96.4 percent of tariff lines covered in 2010.

Last week, DTI officials held a parallel event during the AANZFTA Joint Committee and Related Meetings in Wellington, New Zealand to orient importers in New Zealand on products which could be sourced from the Philippines. Informing importers of the trade benefits, particularly tariff preferences, available to importers under AANZFTA is part of DTI’s business education program, Doing Business in Free Trade Areas (DBFTA) which aims to increase utilization of preferential trade agreements and to maximize Philippine export potential.