The Philippines remains interested in joining the mega- trade deal, the Trans-Pacific Partnership (TPP), when it opens up to new members, outgoing Trade Secretary Gregory L. Domingo said.
“As far as the TPP is concerned, there was an announcement of an agreement of talks last night, but that will take some time to conclude, because each of those countries has to go through each of their processes of approval. So the TPP will still take time. But the Philippines has indicated very clearly that we want to join the TPP,” Domingo said at the Board of Investments’ 48th Anniversary held on Tuesday.
While Domingo clarified that the accession protocol for new members is still far from being fleshed out by TPP members, the Philippines is “right at the door” of the TPP.
“We’re waiting for it to open, and as soon as it opens, we’ll start discussions,” the trade secretary added.
As a way of preparing for the possible entry, the Philippines already had technical consultations with six of the 12 TPP members, including the United States.
The Philippines has so far held technical consultations with Malaysia, Australia, the US, New Zealand, Mexico and Canada.
The Philippines has also expressed interest in forging free-trade agreements with Canada, Peru and Chile—seen as “building blocks” toward the TPP.
The TPP trade pact has remained a highly secretive deal, with the text only known to negotiating members.
Meanwhile, Japanese Prime Minister Shinzo Abe’s efforts to push through structural changes to recharge Japan’s economy got a boost after negotiators reached a deal on the TPP.
The ambitious trade deal, if ratified by lawmakers in the 12 member-nations, gives Abe more ammunition to fight opposition in the agriculture sector while widening Japan’s market for exports of cars and auto parts. Attracting overseas investment, and expanding exports through structural shifts and deregulation are key to Abe’s growth plans, as the nation is burdened with a shrinking and aging population.
“This is a good start for Abe at a time when he has just shifted his focus to the economic agenda” after passing bills to strengthen the role of Japan’s military, said Junichi Sugawara, a senior research officer at Mizuho Research Institute in Tokyo. “The agreement will become a driving force for Abe’s administration.”
After final talks in Atlanta, an agreement was announced on Monday on the TPP, a pact more than five years in the making designed to boost commerce among nations that produce 40 percent of global economic output. The deal was announced before elections in Canada later this month, and the US and Japan next year, which would have complicated passage of the agreement in those countries.
“Reaching agreement is a great result not just for Japan but for the future of the Asia Pacific,” Abe said in Tokyo on Monday after the deal was announced, in comments on state broadcaster NHK. “We have been able to produce results in one of the greatest issues that has faced my administration.”
Abe came into office in December 2012 with a three-pronged economic revival plan—unprecedented monetary easing, flexible fiscal policy and broad regulatory changes—to end the deflation that has dogged Japan for more than a decade. While his policies have weakened the yen, lifted stock prices and increased corporate profits, the economy has sputtered with contractions in four of the 10 quarters since he became prime minister.
(Catherine N. Pillas, Bloomberg News)