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MANILA, Philippines — The first round of negotiations for a free trade agreement (FTA) between the Philippines and Chile has been set for March.
“We intend to finalize scoping by January, then we will start negotiations in March,” Trade Undersecretary Allan Gepty, who is leading the negotiations for the Philippine side, told the Inquirer last week.
Gepty said that negotiators from Manila and Santiago will meet in Chile for the inaugural round of discussions.
The Philippine and Chilean governments announced last Dec. 6 that they will start negotiations for an FTA, a move aimed at the expansion of the economic relations between the two countries, which is valued at more than $140 million annually.
READ: Philippines and Chile begin negotiations for free trade deal
Sought for comment, Rizal Commercial Banking Corp. chief economist Michael Ricafort told the Inquirer that the Philippines should focus on negotiating for products that it usually imports to boost local supply and diversify its international sources.
Ricafort said that the FTA could also be another opportunity for the Philippines’ export products that are not readily available in Chile.
“Chile could also add or diversify sources for its global supply chains especially for global and multinational companies operating there with reduced to no more import tariffs,” he said.
Ricafort said this FTA could become a litmus test for other South American countries, including additional FTAs with regional blocs in the continent that could be replicated once successful.
Strengthen exports
Meanwhile, China Bank Capital Corp. managing director Juan Paolo Colet said in a separate interview with the Inquirer that well-crafted FTAs are important and strategic tools for expanding the country’s export markets.
Colet said it also holds true in boosting the benefits of trade and enhancing bilateral relations.
“We need to strengthen our export sector as a key contributor to domestic growth. The FTA approach is also particularly crucial in the face of potential Trump 2.0 tariffs that could adversely impact our exporters,” said Colet.
Two-way trade in goods between the Philippines and Chile was valued at $141.24 million in 2023, with exports to Chile amounting to $37.84 million and imports from it reaching $103.41 million.