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PHL, US free trade negotiations likely to start next year —DTI


Negotiations for a free trade agreement (FTA) between the Philippines and the United States have been stalled and will likely start next year, as the American negotiators have to concede to a meeting, the Department of Trade and Industry (DTI) said on Wednesday.

In a press conference in Makati City, Trade Secretary Ramon Lopez said preparations are now ongoing for talks to start by 2020.

“Things are moving and the preparations which include also the preparation for TIFA (Trade and Investment Framework Agreements) as a precursor,” Lopez told reporters.

“It just needs some more time for their Congress, the US Congress, to give a go signal for their US Trade Representative to start a negotiation with the Philippines," he added.

Trade talks were initially expected to start in September 2018, said Ambassador to Washington Jose Manuel Romualdez.

An FTA is a pact between two or more nations to reduce barriers to imports and exports among them.

At present, the Philippines enjoys a scheme of General System of Preferences (GSP) with the United States, which eliminates tariffs on several products from US trading partners such as the Philippines.

“We have a good sense of support coming from our trade partners in the private sector, the importers’ group, as well as the exporters’ group in the Philippines which are exporting heavily in the US, especially those items included in the GSP,” said Lopez.

“Hopefully, with the potential commencement of FTA negotiation, it can attract more foreign investors who would also like to ride on that possible development,” Lopez added.

Should an FTA with the United States come into fruition, Lopez said this could push American businesses to expand in the Philippines. “Them looking at the Philippines as their potential hub and maximize their potential in solving the US market.” —VDS, GMA News

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