Phl wants more SMEs in Asean eco body

MANILA, Philippines - The Philippines is pushing for increased participation of small and medium enterprises (SMEs) in the envisioned ASEAN Economic Community (AEC) that would be formed by 2015 during the 20th ASEAN Summit in Phnom Penh, Cambodia from April 3 to 4, Trade Undersecretary Adrian Cristobal Jr. said in a briefing yesterday.

Cristobal will join the high-level Philippine delegation led by President Aquino to the regional bloc meeting next week.

“The main agenda of the the government is how the Philippines can fully participate in the regional economic bloc’s integration,” he said.

He noted that the Philippines is particularly strong in the export of manufactured goods, electronics, autoparts, agricultural products, non-metalic products, oils and fats, coconut oil, wood craft, and furniture.

“We are coming out with best practices at customs level. There is strong emphasis now within the ASEAN at trade facilitation,” Cristobal said.

Government and industry experts have agreed that as as much as 90 percent of the companies in the counrty today are SMEs.

Cristobal said the Philippines would also actively participate in the ASEAN working groups in trade, services and investment.

He said that in the Philippines, more exporters are becoming aware of the Trade departments’ program called Doing Business in Free Trade Areas (DBFTR). Citing a study by the Asian Development Bank, he noted that as of 2010, utilization rate of free trade agreements reached 41.15 percent in 2010 from only 20 percent in 2008.

“On that basis, we can start negotiating with other trading partners,” he said.

By 2015, ASEAN envisions an integrated economic community with a single market and distribution base. The AEC is envisioned to become a highly competitive region that is fully integrated into the global economy.

This year, the 20th ASEAN Summit will be chaired by Cambodian Prime Minister Hun Sen. During the summit, leaders will adopt the Phnom Penh Declaration on ASEAN: One Community, One Destiny.

The meetings will also cover updates on the implementation of the ASEAN Charter and Roadmap for the ASEAN Community.

Cristobal said that all ASEAN member states are on track to achieving regional economic integration.

ASEAN is also working on a self-certification option for exporters.

Self-certification, which is practiced in the European Union and other developed economies, enables exporters who are certified by their regional bloc as possessing capacity and competence to certify themselves as

compliant to the Rules of Origin (ROO) scheme. Their product shipments will then be qaulified for preferential tariff treatment.

At the sidelines of the summit plenary sessions, the Philippines will also participate in the 11th ASEAN Economic Ministers-EU Trade Commissioner consultations.

To be discussed in the consultations are ways to improve trade facilitation.