Free-trade pact with European group awaits Senate nod
President Duterte ratified last December the free trade agreement (FTA) between the Philippines and the European Free Trade Association (PH-Efta), now leaving it up to the Senate’s consideration.
According to a Malacañang document, Duterte ratified the FTA on Dec. 8, 2017, recognizing the market potential of entering in a trade deal with Efta.
Efta is the intergovernmental organization of Iceland, Liechtenstein, Norway and Switzerland, its official website said.
“Upon entry into force, the PH-Efta FTA will provide the Philippines duty-free market access to all industrial and fisheries products to the Efta member states, with the Philippines benefiting from liberal rules of origin requirements to qualify for preferential treatment,” the document read.
“The Efta member states made offers in all categories of services sectors in all modes of supply which present opportunities available to Philippine service suppliers for both skilled workers and professionals,” it added.
An FTA highlights the potential of PH-Efta economic relations, even though current trade and investment ties are weak.
According to the Department of Trade and Industry (DTI), the Philippines accounts for only 2.7 percent of Efta imports in the Association of Southeast Asian Nations (Asean) in 2016, and 3.2 percent of Efta’s total investments in Asean in 2015.
The FTA was signed under the Aquino administration in April last year, marking an important step in strengthening the relations between the Philippines and EFTA member states.
The agreement covers trade in goods, services, investment, government procurement, intellectual property rights, competition and sustainable development.
“After examining the text thereof, I find it advisable to ratify the free trade agreement between the Efta states and the Philippines and seek the Senate’s concurrence thereto,” Duterte said.
