The Philippines will use its hosting of the Asia-Pacific Economic Cooperation (Apec) meeting this year to pitch for the World Trade Organization (WTO) trade-facilitation agreement (TFA), which Manila believes will be an important tool for its micro, small and medium enterprises (MSMEs).
“There are many interventions that can help micro and small businesses, in particular, to participate in global value chain, since these two segments are usually left out. Among these is the support for the TFA of the WTO,” Trade Secretary Gregory L. Domingo said in a media briefing before the commencement of the Apec Ministers Responsible for Trade (MRT) meeting in Boracay, Aklan.
The theme, “Fostering MSMEs Participation in Regional and Global Value Chains,” has been the general focus of Apec trade-related meetings, and the Philippines continues to push for the adoption of the Boracay Action Agenda Plan by the end of the MRT meeting.
The Boracay Action Agenda Plan consists of specific, concrete and practical interventions that Apec economies can implement to provide MSMEs wider opportunities to integrate into the global or regional trade arena, either through global value chains, or as direct exporters of finished goods and services.
According to Domingo, the TFA, part of the Bali Package being negotiated by the WTO, will simplify processes for cross-border trade for micro and small enterprises.
These smaller businesses are currently burdened by various regulations preventing them from exporting such as rules of origin requirements. These requirements also block micro and small businesses from taking advantage of free-trade agreements.
“For medium enterprises that have a lot of people, lawyers and tax accountants, this is not a problem. But for micro and small, they are largely left out,” Domingo said.
Updates on the progress of the TFA will be aired by WTO Director General Roberto Azevêdo, who is
in the country to participate in Apec meetings.
Azevêdo, at a roundtable on “Multilateral Trade for Inclusive Growth: Progress and Prospects” held at the Asian Development Bank headquarters, said “good governance, openness and dynamism have combined to build a strong trading economy here.”
“The Philippines is one of the fastest-growing economies in the region—thanks in no small part to the competitiveness of its exports. Good governance, openness and dynamism have combined to build a strong trading economy here. And I think it is fair to say that the World Trade Organization has played a role in underpinning this success. After all, the Philippines has been a member of the WTO since Day 1,” he said.
Noting that the Philippines is in the global spotlight as the chairman of Apec, he asked for support in the ratification of the TFA, and expressed hope for further progress in expanding the WTO’s Information Technology Agreement at the upcoming Apec Ministerial Meeting in Boracay.