13/096/2011 (Philippine Information Agency) - Doing business in Free Trade Areas has several benefits, said Dept. of Trade and Industry (DTI)-Bureau of Export Trade Promotion Director Senen Perlada.

A roadshow campaign, dubbed as “Doing business in Free Trade Areas (DBFTA),” was conducted last Thursday in GenSan to educate stakeholders on the importance of Free Trade Agreement (FTA) in improving the economy of a country.

Perlada said the FTA is existing worldwide and is effective. “Andito na ito, we have to play it,” Perlada told local media. "If our partner economy ay mas agresibo, matatalo tayo at sila lang ang makikinabang,” he added.

FTAs can create “increased exports, lower costs of inputs to production, wider range of choice of goods for consumers at lower process, and job generation,” he said.

Perlada said the country’s exporters should take advantage of the zero-tariff-import scheme under FTA, encouraging those already engaged in small and medium enterprises (SMEs) to utilize it to their own gain.

FTA is a “contractual agreement” entered between two or more countries to encourage free flow of goods and services by means of granting both parties a preferential market access by reducing or eliminating tariffs and other barriers of the trade.

However, Trade and Industry Assistant Secretary to the International Trade Group Ramon Vicente Kabigting said even if a country like the Philippines is having an agreement with other countries, it does not lose the power to impose and exercise its own trade laws with respect to FTA.

“FTA does not stop any country from imposing standards on certain imports sold here,” he said. The Philippines is currently having trade agreements with the ASEAN nations, Cambodia, Laos, Myanmar, Malaysia, Singapore, Thailand, Japan, Vietnam, Indonesia, China, India, New Zealand, Australia aside from having a bilateral agreement with Japan, he said.

"[FTA] does not touch on the goods but rules and services. This is to put the two parties together so they have common standards and free trade agreement,” he said.

He also said that if only the country’s investors get more involved internationally, they will absorb and understand better the policies and standards and the importance of FTA in doing business.

With FTA’s zero tariff on various products in almost all partner-countries, there will be an assured influx of more business and investment in the country that would mean jobs for the Filipinos and will redound eventually to an improved economy, he added.

Jan Ced, President of General Santos City Chamber of Commerce and Industry, Incorporated, lauded the DTI for initiating the DBFTA roadshow describing it “beneficial” to investors and businessmen in the city. He also acknowledged that there are businesses which require investments outside GenSan.

Meanwhile, DTI-12 Regional Director Ibrahim Guiamadel said the number one export product of Region-12 for the past years and this year is still tuna with palm oil.

He said there was an increase of more than 29 percent in exports last year.

The DBFTA “aims to enable businesses to access market opportunities and avail of benefits under the country’s current free trade agreements.” (CTA/PIA General Santos City)