Philippines still interested in CPTPP membership

MANILA, Philippines — The Philippines is still interested in becoming a member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) as the membership is expected to create new relations with economies outside the country’s existing bilateral free trade deals, according to Trade Undersecretary Allan Gepty.

In an interview with reporters, Gepty said the Philippines had manifested its interest to join the CPTPP even when it was still called the Trans Pacific Partnership Agreement (TTP).

“One big reason why we wanted to join the TPP, among others, is that the United States, at the time, was still part of the TPP. The US is a major trading and investment partner of the Philippines,” Gepty said.

“For us to stabilize our preferential arrangement with the US, we thought that it would be best to also join the Trans Pacific Partnership Agreement. And other parties of the TPP are major trading partners of the Philippines. That was our consideration before,” he said.

Gepty noted the comprehensive coverage of the trade accord, which is important in attracting investors as it focuses on areas such as intellectual property and competition.

“These are the areas wherein investors would also look into a country’s legal regime. So, if you have a conducive business environment, then it gives more attraction to foreign investors to come in and locate in that country. We want also to be seen as a country or economy that is really advocating a stable and predictable rules now when it comes to trade and investment,” he explained.

The TPP was signed in 2016 by Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, Peru, New Zealand, Singapore, Vietnam and the US. However, in January 2017, the US withdrew its membership in the agreement.

The free trade agreement later evolved into the CTPP, which was signed by the remaining 11 signatory countries of the previous agreement. In July last year, the UK also joined the CPTPP.

Gepty acknowledged that so much has happened since the Philippines manifested its interest to join the TPP, citing the withdrawal of the US, in particular.

“But still our interest remains because we see that the CPTPP members are really valuable partners of the Philippines,” Gepty said.

He explained that since the CPTPP is very comprehensive, the Philippines will have to do an internal evaluation.

“We have to take into account also the economic impact of participating in CPTPP. What are the legal implications to our laws if we participate in CPTPP. Do we have to change or amend our law? Those kind of studies,” the trade official said.

During a recent forum in Makati last week, Gepty said the addition of the UK into the CTPP gives the Philippines more reason to fast-track its participation in the accord.

He said that joining the CPTPP would give the Philippines additional access to markets that are not major trading partners of the Philippines, such as Canada, Mexico, Peru, and Chile.

Gepty also expressed hope for a decision on the potential resumption of a free trade agreement between the Philippines and the European Union within the first quarter of the year.

He said that the stocktaking exercises between the two parties have concluded as scheduled in December.