MARKET DEVELOPMENT
Free Trade With EFTA By 2016
Free Trade With EFTA By 2016
22/06/2015 (Malaya) - The Department of Trade and Industry (DTI) has justified the country’s bid to clinch a free trade agreement with the European Free Trade Area (EFTA) comprising Iceland, Liechtenstein, Norway and Switzerland, saying this will widen the country’s access to trade and investments to these rich countries.
The DTI said the current administration targets to have a solid agreement by 2016.
In a public hearing, the DTI said investments from EFTA countries in the Philippines have declined to P37.81 million in 2013 from P13.81 billion in 2010. Only 4.61 percent of EFTA investments in Asean go to the Philippines.
“But there is a significant room to improve,” the DTI said in a document presented to the Tariff Commission hearing.
EFTA imports from the Philippines only comprise 2.78 percent of its Asean imports on products similarly sold by the Philippines.
The DTI said the Philippines can supply some products that EFTA now imports from Asean or from the rest of the world but which are being exported to the European Union by the country. These are frames and mounting for spectacles; parts of gas turbines; ball bearings; hydraulic power engines and motors; babies’ garments; undergarments; dresses; fresh or dried bananas; palm oil; fresh or dried guavas; mangoes and mangosteens; and fresh or dried pineapples and;.ballasts for discharge lamps or tubes; gear boxes and parts; safety airbags; mattress supports for bed frames; tobacco refuse; vinegar and fermented vinegar; smoking tobacco; glycerol; seaweeds and other algae; juice of fruit or vegetables; and jams, jellies and marmalades.
Products currently being imported by EFTA from the Philippines are electronic integrated circuits, semiconductors; artificial teeth; fresh or chilled fish fillets; prepared or preserved tunas; pneumatic tires; travelling bags; T-shirts, jackets; bicycles; desiccated coconuts; crude coconut oil; pineapple juice, prepared or preserved pineapples; and raw cane sugar.
The DTI said imports from EFTA face minimal sensitivities in terms of tariff based on current trade.
About 99.9 percent of current imports in non-agriculture products of the Philippines from EFTA are less than 15 percent (most-favored nation or MFN). About 84.5 percent of current imports of the Philippines from EFTA on agriculture also have a MFN rate of less than 15 percent.
EFTA exports to the Philippines in 2013 stood at $370 million compared to $390 billion for an equivalent of 12 percent.
The Philippines and EFTA are currently in the second round of talks for the free trade agreement. The third round is set on September while the fourth and final round will be in November.
EFTA countries have a combined gross domestic product (GDP) of $1.22 trillion and a population of 13.52 million with an average GDP per capita of $91,928.
The DTI said the current administration targets to have a solid agreement by 2016.
In a public hearing, the DTI said investments from EFTA countries in the Philippines have declined to P37.81 million in 2013 from P13.81 billion in 2010. Only 4.61 percent of EFTA investments in Asean go to the Philippines.
“But there is a significant room to improve,” the DTI said in a document presented to the Tariff Commission hearing.
EFTA imports from the Philippines only comprise 2.78 percent of its Asean imports on products similarly sold by the Philippines.
The DTI said the Philippines can supply some products that EFTA now imports from Asean or from the rest of the world but which are being exported to the European Union by the country. These are frames and mounting for spectacles; parts of gas turbines; ball bearings; hydraulic power engines and motors; babies’ garments; undergarments; dresses; fresh or dried bananas; palm oil; fresh or dried guavas; mangoes and mangosteens; and fresh or dried pineapples and;.ballasts for discharge lamps or tubes; gear boxes and parts; safety airbags; mattress supports for bed frames; tobacco refuse; vinegar and fermented vinegar; smoking tobacco; glycerol; seaweeds and other algae; juice of fruit or vegetables; and jams, jellies and marmalades.
Products currently being imported by EFTA from the Philippines are electronic integrated circuits, semiconductors; artificial teeth; fresh or chilled fish fillets; prepared or preserved tunas; pneumatic tires; travelling bags; T-shirts, jackets; bicycles; desiccated coconuts; crude coconut oil; pineapple juice, prepared or preserved pineapples; and raw cane sugar.
The DTI said imports from EFTA face minimal sensitivities in terms of tariff based on current trade.
About 99.9 percent of current imports in non-agriculture products of the Philippines from EFTA are less than 15 percent (most-favored nation or MFN). About 84.5 percent of current imports of the Philippines from EFTA on agriculture also have a MFN rate of less than 15 percent.
EFTA exports to the Philippines in 2013 stood at $370 million compared to $390 billion for an equivalent of 12 percent.
The Philippines and EFTA are currently in the second round of talks for the free trade agreement. The third round is set on September while the fourth and final round will be in November.
EFTA countries have a combined gross domestic product (GDP) of $1.22 trillion and a population of 13.52 million with an average GDP per capita of $91,928.