The Department of Trade and Industry (DTI) and the country's leading business group, the Philippine Chamber of Commerce and Industry (PCCI) have agreed to fully utilize the Philippines’ trade agreements via education and advocacy campaigns, mentorship programs and through international trade assistance centers, among others.
DTI Secretary Alfredo E. Pascual and PCCI President George Barcelon recently signed a five-year Memorandum of Understanding (MOU) to establish a strategic and institutional partnership between the government and the private sector to raise public awareness and enhance the utilization of the country’s established trade agreements.
These include free trade agreements (FTAs), preferential trade agreements (PTAs), economic partnership agreements (EPAs), and other related pacts like the Regional Comprehensive Economic Partnership (RCEP) agreement.
Pascual said the MOU "is another concrete step to help boost the competitiveness of our industries."
"We aim to undertake initiatives that will empower our stakeholders to compete in a bigger market and seize the available opportunities therein. Through these FTAs, it will provide an enabling environment for businesses, particularly as we advocate the utilization of these FTAs and build the capacity of our stakeholders,” he said.
DTI noted that the PCCI, regarded as “The Voice of the Business” and the largest business organization in the country, has always been its reliable partner in shaping trade and investment policies in the country.
PCCI plays a vital role in enabling the nation's export industries to take advantage of these trade agreements with its vast network of alliances with different industry groups and business councils.
Further, the partnership is aligned with the DTI’s objective to strengthen the competitiveness of Philippine businesses, particularly the micro, small, and medium enterprises (MSMEs).
Under the MOU, DTI and PCCI will lead regular trade-related dialogues and consultations with local business communities, especially those with export potential.
Further, the PCCI and other industry associations will be provided with capacity-building and mentorship programs to strengthen their capability to utilize trade agreements and arrangements effectively.
DTI will also establish the development of international trade assistance centers or help desks in important regions or provinces with aid from PCCI and its local chambers.
Likewise, both parties will cooperate to offer business and industry associations networking and linking options for those looking to join the established FTAs and other economic cooperation agreements to participate in global value chains (GVCs).
This relationship is appropriate given the Philippines' recent entry into force of the RCEP agreement, which will allow them to take advantage of opportunities in the RCEP region.
The country’s FTA network is anchored mainly on regional FTAs via ASEAN. It has only two bilateral FTAs, that is, with Japan and the European Free Trade Association (EFTA). Recently, the country just signed another FTA with South Korea, and once effective, it will be its third bilateral FTA.
The country also benefits from various Generalized Scheme of Preferences (GSP) such as the European Union GSP Plus (EU-GSP+) and the UK Developing Countries Trading Scheme (UK DCTS). (Ma. Joselie C. Garcia)