Exporters urged to look at opportunities in EFTA

MANILA, Philippines — The Department of Trade and Industry (DTI) is urging Philippine exporters to consider opportunities in the European Free Trade Association (EFTA) and take advantage of the country’s free trade agreement (FTA) with the bloc.

“This is part of the DTI’s commitment to help our businesses – big and small alike – to grow, become global, and share in the benefits of international trade by opening new markets for Philippine products,” Trade Undersecretary Ceferino Rodolfo said in a statement yesterday.

The FTA with EFTA member-states Iceland, Liechtenstein, Norway and Switzerland entered into force in June 2018.

Under the FTA, Philippine exporters can benefit through lower or zero tariffs for goods entering the EFTA states, liberal rules of origin, and trade-facilitating measures.

The FTA also removes the need for exporters to secure a certificate of origin from the Bureau of Customs.

Since the agreement came into effect, Rodolfo said the Philippines has reversed its trade deficit with EFTA.

In particular, the Philippines posted a trade surplus of $47 million in 2019 and grew to $109 million last year.

Even with the coronavirus pandemic, Philippine exports to EFTA went up six percent to $461 million last year, with electronic integrated circuits, static converters, crude coconut oil and prepared and preserved pineapples among the top industrial and agricultural exports.

Apart from promoting trade in goods, the EFTA is also seen to help lift trade in services.

Philippine service suppliers such as architects and engineers can benefit from the trade deal due to commitments by the member-countries for cross-border movement.

To guide Philippine exporters on how they can take advantage of the FTA with EFTA, the DTI is holding a webinar with EFTA Secretariat officials on Sept. 28.