PH seen ready for Asean economic integration

Trade Undersecretary Adrian S. Cristobal Jr. EU PHOTO FROM BOI.GOV.PH

MANILA, Philippines—The Department of Trade and Industry remains bullish on the country’s prospects with the upcoming regional economic integration of the 10 member-states of the Asean starting 2015, stressing that the Philippines is “primed and ready.”

Although some quarters continue to highlight the country’s unpreparedness for the integration, Trade Undersecretary Adrian S. Cristobal Jr. noted that for the Philippines, the establishment of the Asean Economic Community would mean vast opportunities for growth and intra-Asean investments, dynamic competition as well as complementation.

“Since 2010, most Asean goods have been traded in the region at zero tariff, including products from the Philippines. A considerable number of our local companies have since established their presence within Asean, engaged in healthy competition with businesses located in the region,” Cristobal explained.

“The private sector has been aggressive in gearing up for competition and complementation, to better serve a bigger market outside of the Asean and strengthen its market presence. Government, on the other hand, is addressing non-tariff barriers so we can benefit more from intra-Asean trade,” he added.

By virtue of the Asean Trade in Goods Agreement (Atiga), most of the import duties in Asean have been at zero since January 2010. More than 99 percent of goods traded in Malaysia, Thailand, Singapore, Indonesia and Brunei are already at zero tariff, while Cambodia, Laos, Myanmar and Vietnam have been offering 0-5 percent duties on 98.6 percent of goods sourced within the region.

Only a few products are still protected by tariffs within Asean such as rice, sugar, swine and chicken.

The Department of Trade and Industry (DTI) is holding this week a forum entitled “Converging towards an AEC Game Plan” to tackle topics that include competitiveness as a driver of growth, deeper private sector engagement in the AEC integration process and the adoption of a strong, harmonized national game plan for AEC 2015.

“In the DTI tradition of collaboration and consultation, our sustained engagements with the private sector have proven helpful in identifying issues and focusing on areas that require intervention. That is why both private and public sectors need to discuss and align our trade and economic interests in Asean as well as in the rest of the Asia-Pacific region,” Cristobal explained.

The forum will also accelerate DTI’s initiatives to increase awareness and promote proper understanding of the AEC, deepen discussions through dialogue and mobilize support for Philippine participation in the AEC.

Some 500 participants from the government, representatives from the private sector, academe, civil society and media have been invited and are expected to attend the forum on April 10.

The AEC aims to create a single-market economy with free movement of goods, services and investments throughout the Asean region and is the culmination of Asean’s economic efforts since the 1990s.

It was in 2007 that Asean leaders adopted the AEC blueprint as the guide for all member-countries, including the Philippines, in establishing the AEC, which envisions a stable, prosperous, highly competitive economic region with “equitable economic development and reduced poverty and socioeconomic disparities.”