The Philippines remains interested in joining the Trans-Pacific Partnership (TPP) agreement and the Department of Trade and Industry (DTI) is now looking into the feasibility of being part of the trade deal.
DTI chief Ramon M. Lopez told the BusinessMirror that the country will continue to do its “due diligence” on the trade pact, even if the TPP hangs in the balance.
“We have indicated our interest to join the TPP to be able to gain from trade opportunities in markets of other participating countries,” Lopez said.
“We are studying the provisions and we’re making a feasibility study,” he added.
Though details of the study were not disclosed, the DTI’s call for a status quo on foreign-trade policy is in line with the Duterte administration’s stance on maintaining the economic policies of the Aquino administration.
Former DTI chiefs Gregory L. Domingo and Adrian S. Cristobal Jr. were both vocal about the need to join the TPP so that the country would not miss out on foreign investments in manufacturing.
The trade pact will remove 98 percent of remaining tariffs on trade in goods among TPP members, which will help
Vietnam and Malaysia boost their exports to other TPP countries, notably the US—the world’s largest consumer market, as it accounts for around 30 percent of global consumption.
Former Socioeconomic Planning Secretary Dr. Cielito F. Habito echoed the same sentiment in a recent forum, saying some companies in the Philippines are already eyeing to locate to Vietnam so they could enjoy duty-free access to the US market under the TPP.
Vietnam’s garments and textiles industry, in particular, is poised for further growth as investments have already began pouring into the country.
However, Habito also pointed out that the 12-member trade deal has yet to be approved by the US Congress, and by their respective signatory governments.
The approval process itself is seen to hit a roadblock, as both the Republican and Democratic presidential nominees have expressed aversion to the TPP.
Citing a study by the University of the Philippines’s School of Economics, Habito said joining the TPP may increase local exports by 42 percent.
Failure to join the TPP, he said, will allow Vietnam to lure in more investments and get more orders for textiles, garments and petroleum products.
Currently, half of the Philippines exports go to countries that are signatories to the TPP, notably the US and Japan.