A Filipino delegation will visit the United States later this month for a bilateral strategic dialog that is expected to open the negotiations for a free trade agreement, an official of the Trade Department said Wednesday.
Trade Undersecretary Ceferino Rodolfo said a bilateral strategic dialogue was arranged with the US that would lead to the initial talks for the proposed FTA.
“We are relieved that the US government has recognized the Philippines interest for an FTA. It was announced by the White House that the US may soon accommodate the Philippines’ request for discussions,” Rodolfo said.
US President Donald Trump visited the Philippines on Nov. 13, and Filipino officials “suggested that a free trade agreement also be concluded between the US and the Philippines” while American officials agreed to study the proposal.
Following the meeting between Trump and President Rodrigo Duterte, the two countries issued a joint statement at the sidelines of the Asean Summit in Manila.
The two countries said they “decided to further deepen the extensive US-Philippine economic relationship” and “discussed ways to expand on their mutual commitment to free, fair and balanced trade that increases economic opportunity for all.”
“The two leaders pledged to nurture economic ties, including private sector cooperation, to create jobs and opportunities for people in both countries. To this end, both sides will explore strengthening dialogues for innovation and sharing of best practices in technology to optimize the position of the Philippines as a preferred destination for American investments in the Asia-Pacific region,” the joint statement stated.
Rodolfo said the Trade and Investment Framework Agreement meeting in July where the US noticed its $1.8-billion trade deficit with the Philippines could be a starting point for the free trade negotiations.
Rodolfo said the government’s goal in pursuing the FTA with the US was to expand the market access of Philippine products, especially agriculture items. About 75 percent of Philippines goods and products already enter the US duty-free, but the Philippines wants to further expand the coverage.
A number of agricultural products from the Philippines have yet to gain entry into the US such as carrageenan and seaweeds. Other products are wristwatches, garments and textiles.
The US, for its part, wants the entry of more frozen meat products into the Philippines.
Trump also wanted the Philippines to reduce the tariff on American cars, saying that Japanese cars were coming into the country duty-free.
Rodolfo said the Trade Department was conducting a study on how to best approach the US FTA and what the concessions the Philippines could provide.
The department commissioned the Philippine Institute of Development Studies two months ago to conduct the study in anticipation of the bilateral FTA.
The Philippines is the 31st largest trade partner of the US, while the US is the country’s third largest trade partner, after China and Japan.