Purisima backs proposed Asia-LatAm trade pact

MANILA, Philippines — Finance Secretary Cesar Purisima has recognized the potential benefits of Asia-Latin American trade in terms of economic growth.

The United States and 11 other countries that border the Pacific Ocean are currently negotiating the trade and investment liberalization pact.

The cutting-edge agreement aims to unite a dozen nations with the goal of establishing a free trade area.

Seeking to create a 21st century agreement that addresses the myriad of issued faced by an increasingly globalized economy, the mega deal will eliminate tariffs and non-tariff barriers to trade in goods, services and agriculture.

“I think that re-establishing the galleon trade for the 21st century between Latin America through the Pacific Alliance and Asia really makes sense,” Purisima told delegates at The Trans-Pacific Summit held in Colombia last week.

The alliance represents 40 percent of the world’s economy.

Purisima noted that emerging Asia, which has a high share of young people, will account for two-thirds of the world’s middle class by 2030.

He is pushing for a blueprint of interconnectivity between the US and Pacific Rim nations in both transportation and regulations given the distance between the two regions.

“Moving goods in the Philippines can cost more than moving goods from Manila to Thailand, or Manila to Houston (Texas, USA). Connectivity through infrastructure is very important if we are to re-establish the galleon trade of the 21st century,” Purisima said. 

Purisima likewise underscored the need for information sharing.  “I think there must be a channel for sharing information. Today’s world of Internet obviously makes that easier. But there are  many barriers, such as barriers of culture and barriers of language. I think we must make the extra step to make it easier for the medium sized to smaller companies to be able to find out what the opportunities are across the oceans,” he said.

He said the Philippines will be in an ideal position again to re-establish its role as a transshipment point in the galleon trade of the 21st century.

“We are part of the aggrupation called Asean, which is almost the same size as the Pacific Alliance here in Latin America. I think if we work together, Aseanand the Pacific Alliance as the hubs of our respective regions then the chances of truly reestablishing this route will, I think, become a reality sooner rather than later,” he said.