Envoy reiterates Phl’s keen interest to join Trans Pacific Partnership

MANILA, Philippines - The Philippines’ commitment to trade reform and liberalization has shown the country’s readiness to join the United States-led Trans Pacific Partnership (TPP), Ambassador Jose Cuisia Jr. said.

In a press briefing at the Philippine embassy in Washington on Dec.10, Cuisia cited the business community’s taking cognizance of the vigorous efforts of the Aquino administration to initiate reforms and set the stage for the country’s inclusion in the TPP.

“Today, we look back on an eventful year, but we also look back on the great strides taken by the Philippines on the firm belief that good governance is good economics. The Philippine economy is in excellent shape, and the future holds much promise,” Cuisia said.

He described how strong macroeconomic fundamentals, prudent public finance management and good governance have significantly improved business environment and competitiveness.

He noted the re-emergence of the industry sector as a strong driver of economic growth.

He also reassured US corporate executives that the downturns in GDP growth and the stock market were reactions to external conditions rather than offshoots of problems within the Philippine economy.

“Our strategic gains in competitiveness and transparency have been validated by independent institutions,” Cuisia told the audience, citing the Index of Economic Freedom of the Heritage Foundation, World Economic Forum (WEF) Global Competitiveness Report, and the Millennium Challenge Corporation (MCC) Scorecard.

The ambassador also reported developments in infrastructure.

He also said laws passed under the administration’s reform agenda have increased the Philippines’ attractiveness to investors and institutionalized the foundations of good governance, fair competition and business transparency.

“These laws ensure that the substance and pace of reforms will be sustainable,” he said.

The embassy, in a statement, said reactions to the economic portion of the briefing were positive and optimistic.

“Over the last five years, the Aquino administration made impressive strides in growing the Philippine economy and improving governance,” said Alexander Feldman, president and CEO of the US-ASEAN Business Council.

“We have seen a steady increase in US business confidence in the Philippines over the past several years,” said John Goyer, a senior director at the US Chamber of Commerce.

In the briefing, Cuisia spoke about the establishment of the ASEAN Economic Community, as well as Manila’s hosting of Asia Pacific Economic Cooperation (APEC) summit recently.

He also discussed President Aquino’s bilateral meetings with US President Barack Obama and with other US officials, the South China Sea arbitration case and Philippines-US defense cooperation, as well as Aquino’s participation in the climate change conference in Paris.

Cuisia also presented slides on the state of tourism in the Philippines. This year, the Philippines ranks 7th in the WEF Travel and Tourism Competitiveness Index, jumping 20 places from the 2011 level.

“We look forward to working with the government of the Philippines to continuing to ensure that American business is aware of and takes advantage of the opportunities in the Philippines as the Philippines moves toward eventual accession to TPP,” Feldman said.

The TPP seeks to lower or eliminate trade barriers such as tariffs, establish a common framework for intellectual property, enforce standards for labor and environmental laws and establish an investor-state dispute settlement mechanism.

The Philippines’ entry into TPP is reportedly being hampered by restrictive provisions in the Constitution, including limiting foreign ownership of lands and certain businesses.