New WTO deal to widen reach of Philippine products, services – DTI

MANILA, Philippines – The Department of Trade and Industry (DTI) expects Philippine products and services to widen their global reach once the World Trade Organization’s Trade Facilitation Agreement (TFA) is ratified.

In a statement yesterday, the DTI said the WTO TFA would enhance the ease of doing business in the Philippines once it is in place.

“The TFA enables streamlined, transparent, and efficient customs procedures which would result to a more conducive trading environment for business, and reduce prices for consumers and producers,” Trade Secretary Adrian Cristobal Jr. said.

“The procedures and provisions in the TFA establishes a more efficient and streamlined mechanism for traders which in turn contribute to improving the overall experience of doing business in the Philippines,” he added.

Cristobal in an interview last month said the Philippines’ ratification of the TFA is in its finalization review and the country would soon submit its instrument of acceptance to the WTO Secretariat.

He said the country’s ratification is just lacking approval from a couple more agencies, without disclosing which agencies are these.

Negotiations on the agreement started in 2004 and will only enter into force once two-thirds of the WTO members have completed their domestic ratification process.

To ratify the WTO TFA, the Philippines will have to submit its instrument of acceptance signed by President Aquino to the WTO in Geneva.

DTI Undersecretary Ceferino Rodolfo said the TFA would also benefit significantly micro, small and medium enterprises (MSMEs) since its implementation would encourage these businesses to participate more actively in international trade.

“Our MSMEs can now easily export goods and finished products as well as import intermediate goods which will serve as industry inputs for processing and re-export, fully integrating our industries into the global value chain. This will result into a spill over effect to other industries, thus generating jobs, disseminating upgraded technology, and advancing the skills and capability of our local entrepreneurs,” Rodolfo said.

The WTO TFA contains provisions for expediting the movement, release and clearance of goods, including goods in transit.

The agreement includes provisions for advance rulings and pre-arrival processing, the use of electronic payment and promotion of the use a single window, provisions for customs cooperation and coordination, and reduced documents and formalities with common customs standards.

According to the DTI, the Philippines serves a crucial processing link along the global value chain, both as a source and destination for intermediate goods, with a 56 percent overall participation rate measured by share of foreign value added in total exports.