Free Trade Agreement Philippines Us

Free Trade Agreement Philippines Us

The United States and the Philippines have a strong trade and investment relationship, with more than $27 billion in goods and services traded (2086). The United States is one of the largest foreign investors in the Philippines and the Third largest trading partner of the Philippines. About 18% of Philippine exports to the US are already imported duty-free under the GSP. However, this benefit is not permanent, it is subject to an annual review. It also covers few goods of interest to the Philippines as well as services. There have been two initial exploratory discussions, but the process will not formally begin until President Trump informs the U.S. Congress of his intention to negotiate a free trade agreement with the Philippines. The United States and the Philippines have had a very close trading relationship for more than a hundred years. We meet regularly with the Philippines under the auspices of the 1989 Bilateral Framework Agreement on Trade and Investment (TIFA) to address outstanding bilateral issues and coordinate on bilateral, regional and multilateral issues. Under TIFA, the United States and the Philippines have also signed Customs Management and Trade Facilitation Agreements (2010), cooperate to stop illegal transshipments of textiles and clothing (2006), and implement minimum access obligations by the Philippines (1998). Under Trump, the U.S. withdrew from the Trans-Pacific Trade and Investment Partnership agreement and unbundled the North American Free Trade Agreement through separate negotiations with Canada and Mexico. The recent agreement with Ottawa is widely seen as a victory for Mr.

Trump, who wants to start the next trade negotiations with Japan. “This is just the beginning and it will take some time, maybe one or two years,” Romualdez said, adding that the Philippines has a trade surplus of $5.4 billion in 2016 with the United States, one of the country`s main trading partners. “We`re going to have to meet with the U.S. Trade Representative to have a joint statement,” Philippine Commerce Minister Ramon Lopez told the Nikkei Asian Review on Wednesday. “I think this will kick-start the approval process from the U.S. Congress.” However, Asian governments have cautiously approached possible trade negotiations with the Trump administration. The U.S. withdrawal from the TPP, threats to withdraw from the U.S.-Korea Free Trade Agreement, and a series of heterodox proposals in the NAFTA negotiations have made foreign governments wary when it comes to entering into negotiations with Washington.

In the meantime, the exploratory dialogue should be supported by all means. A trade agreement between the two countries may be another opportunity to set high standards, including those the government abandoned when it withdrew from the TPP. This is an opportunity for the Trump administration to demonstrate its trade leadership by taking positive and concrete steps to strengthen U.S. economic engagement in Asia.


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