Bali WTO deal to benefit SMEs, says Domingo

MANILA, Philippines - The agreement on the Bali Package reached at the World Trade Organization’s (WTO) 9th Ministerial Meeting,which is designed to streamline trade and give developing countries more options for food security, is seen to benefit the Philippines’ small and medium enterprises (SMEs), particularly exporters.

According to Trade Secretary Gregory Domingo, SMEs could benefit particularly from the trade facilitation agreement.

The trade facilitation agreement, one of the three pillars of the Bali Package, has all member states agreeing to implement reforms to promote transparency and efficiency in customs operations.

“The Bali Package, which includes the agreement on trade facilitation, complements the government’s initiatives to improve customs operations and will greatly benefit our country’s SMEs that participate in trade,” Domingo said.

Along with special and differential treatment provisions, the trade facilitation agreement is seen to complement the Philippines’ initiatives to institute domestic customs administration reforms towards a more efficient and streamlined mechanism for traders, while respecting its implementation capacities.

The transparent and streamlined customs procedures are also seen to encourage new SMEs to trade with firms in other countries.

Trade undersecretary for Industry Development and Trade Policy Adrian Cristobal  Jr. added the trade facilitation agreement could seen to help expand the Philippines’ export markets.

“Our customs operations are more transparent than our developing country markets. This trade facilitation agreement specific to customs rules and procedures on transparency will improve access of our exporters in traditional markets and in other developing countries with a huge market base, as well,” he said.

“More efficient customs administration will reduce the costs of doing business for our exporters selling their goods in other markets and for our SMEs importing raw materials and components from abroad,” he added.

He noted that while in the past, the Philippines has focused on developed countries for exports, there is now a shift to emerging markets or the developing countries.

“Over the past several years, we have expanded our export trade to developing countries and emerging economies such as China, our ASEAN neighbors, Japan, Korea, India, Australia and New Zealand, through free trade agreements. These markets make up the 60 percent of our total global trade,” he said.

Aside from the trade facilitation agreement, the Philippines is also expected to gain from the agriculture pillar of the Bali package.

Under the agriculture pillar, developing countries would be able to maintain and even expand stockholdings of traditional staple crops – like rice – for food security purposes and these countries would be free from disputes at the WTO until the matter of limits or ceiling is permanently resolved.

The Bali package is seen as a historic breakthrough for the WTO and Doha Development Agenda (DDA) after 12 years of failed attempts to get an agreement among the organization’s member states.

“With this downpayment for the DDA, we see enhanced credibility for the WTO as a negotiation forum and a resurgent rules-based multilateral trading system,” Domingo said.