RP seeks bilateral, regional trade deals

The Philippines and other developing countries will continue pursuing bilateral and regional trade arrangements in the meantime following the collapse of the World Trade Organization (WTO) talks in Geneva, officials said.

Executive Secretary Eduardo Ermita warned that developing countries, like the Philippines, are hardest hit when developed economies, like the United States and the European Union, fight in global trade talks.

“It’s a fight among what the United States wants, what China wants, what the US wants of other big countries and it is difficult for a third country like us,” Ermita told reporters.

The WTO talks, which began in Doha, Qatar seven years ago, collapsed after the US and India failed to agree on a compromise to help developing countries protect their farmers from liberalization.

Trade and Industry Secretary Peter Favila lamented that despite a “gallant nine-day effort to establish protection mechanisms for developing countries to address import surges,” the WTO members failed to reach an agreement.

“While this is an unfortunate development, the Philippines shares the view expressed by the WTO Director General (Pascal Lamy) and some members that the supposed gains from any resulting new rules will not be reaped for the meantime,” Favila said in a statement.

“The consequences nonetheless are expected to be greater for developing countries that are most vulnerable in the global economy,” he said.

He said: “the situation also encourages individual members to further intensify pursuing bilateral and/or regional trade arrangements for the time being with respective major trading partners until the Doha Development Round is resuscitated.”

Favila said Lamy has encouraged members to “ensure the preservation of whatever gains that may have been made so far and to find ways of dealing with the way forward for the multilateral trading system.”