EUROPEAN Union (EU) countries are keen on enhancing trade and investment ties with the Philippines through the adoption of trade-facilitation measures and customs modernization.
Ambassador of the EU to the Philippines Guy Ledoux is optimistic that more European companies will consider locating to the Philippines and contribute to help create jobs and added value to its economy.
“Trade facilitation is the oil that makes our trade and investment machine work—let’s make this a joint effort!” Ledoux said during the 40th Philippine Business Conference on Thursday.
He noted that implementing the trade-facilitation agreement that was agreed in Bali, Indonesia, last year would support trade in goods by improving transparency, streamlining customs procedures and eliminating red tape.
“The benefits of trade facilitation are enormous and might even be more important than a further reduction of import tariffs. For example, revenue loss from inefficient border procedures is estimate to be above 5 percent of gross domestic product in some countries,” he said.
The Philippines has submitted an ambitious schedule for implementing the World Trade Organization (WTO) trade-facilitation agreement.
However, the ambassador lamented that some WTO members seem to stall on the progress made in Bali.
“I hope the Philippines will choose to implement its commitments with or without the adoption of the WTO protocol. As you know, the EU is ready to support with technical cooperation as we have done in the past,” Ledoux said.
Ledoux underscored the importance of fast-tracking the passage of important Customs Modernisation and Tariff Act (CMTA) that includes numerous provisions of the trade-facilitation agreement.
He said the CMTA would support intellectual-property rights (IPR) enforcement, trade data collection, risk management linked to post-clearance audit and automation through a national single window.
“Customs modernization and trade facilitation are not limited by the adoption of the WTO trade-facilitation agreement,” the ambassador added.
In January to June this year, trade between the EU and the Philippines increased by 21 percent to $7 billion.
On the other hand, the EU supplies about 30 percent of total foreign direct investments to the Philippines, providing over 400,000 jobs.
Leslie D. Venzon |Philippines News Agency