The Philippines will continue to engage the US to acknowledge its request for a formal bilateral trade agreement that will highlight both countries’ strengths and improve on the low-hanging issues that might impede trade growth.
Trade Secretary Alfredo Pascual said at the sidelines of a forum on investments Wednesday that the Philippines would leverage on its membership in the Indo-Pacific Economic Framework for Prosperity to work on trade agreements with the US.
“IPEF is a framework not a trade agreement. It does not cover market access or tariff. But we will use this framework to collaborate with the US on our trade concerns. Right now, we are working on our proposed FTA [free trade agreement] with the US and the resumption of the US Generalized System of Preferences,” Pascual said at the investments forum organized by the Management Association of the Philippines in cooperation with the Department of Trade and Industry.
Pascual said, however, the DTI recognizes the US Trade Representative stance on the moratorium on FTAs which was announced by the Biden administration as it is geared more on expanding the scope of IPEF across the Indo-Pacific Region.
USTR Ambassador Katherine Tai, in her recent visit to Manila, reiterated that the US government was not keen on entertaining talks on bilateral agreements as it focused on the promotion of IPEF as an economic framework.
“She cannot say otherwise since US President Biden has already made the pronouncement that there will be no FTAs during his term. She’s just voicing that out and we understand where the discussion is and where she is coming from,” Pascual said.
“However, that cannot prevent us from further pushing for other avenues of cooperation like the renewal of the GSP which expires in 2020. We want it to be renewed and we found IPEF as the most suitable the platform for these formal trade relations between the Philippines and the US,” Pascual said.
Tai met with Pascual on April 17 to reaffirm their shared commitment to deepening the US-Philippines bilateral trade relationship and strengthening ties in the Indo-Pacific region.
Both officials looked ahead to the upcoming Indo-Pacific Economic Framework negotiating round. Tai said she appreciated the Philippines for the constructive feedback it provided and noted the tangible economic benefits of the trade pillar.
Tai highlighted the upcoming Asia-Pacific Economic Cooperation Ministers Responsible for Trade meeting in Detroit as an opportunity to demonstrate that resiliency, sustainability and inclusivity are core values in trade policy.
Tai and Pascual touched on several bilateral trade topics and highlighted the importance of the US-Philippines Trade and Investment Framework. They instructed their teams to engage the TIFA working groups as they look forward to holding the next meeting in the future.
Based on the Joint Statement of the US-Philippines 2+2 Ministerial Dialogue, the US and the Philippines aim to deepen bilateral trade and investment relationship under TIFA and continue to work together through negotiations under the four pillars of the IPEF.