The Philippines is one of the fastest-growing economies in Southeast Asia, with a rapidly expanding export industry. In recent years, the country has been actively pursuing trade partnerships with other nations to bolster its economy and increase its competitiveness in the global market. Here are some of the major trade agreements that the Philippines has entered into:
ASEAN Free Trade Area (AFTA) – The AFTA is a regional trade agreement between the ten member states of the Association of Southeast Asian Nations, including the Philippines. Its goal is to promote economic cooperation and integration within the region by eliminating tariffs on goods traded among member countries. Under the AFTA, the Philippines has been able to increase its trade with other ASEAN countries, which now account for a significant portion of its exports.
ASEAN-China Free Trade Area (ACFTA) – The ACFTA is a free trade agreement between ASEAN and China, which was signed in 2010. This agreement has helped to boost the already-strong trade ties between the Philippines and China, with China being one of the country`s largest trading partners. The ACFTA has eliminated tariffs on over 90% of goods exchanged between the two parties, making it easier and more cost-effective for businesses to conduct cross-border trade.
Philippines-Japan Economic Partnership Agreement (PJEPA) – The PJEPA is a bilateral trade agreement between the Philippines and Japan, signed in 2006. As one of the Philippines` largest trading partners, Japan has been an important source of investments, technology, and know-how for the country. The PJEPA has increased the flow of goods and services between the two nations, while also creating new opportunities for Philippine businesses to access the Japanese market.
Free Trade Agreement with the European Free Trade Association (EFTA) – The Philippines signed a free trade agreement with EFTA, a group of four European countries, in 2016. The agreement aims to promote trade and investment between the Philippines and EFTA member states, which include Switzerland, Norway, Iceland, and Liechtenstein. Under the agreement, tariffs on a wide range of goods, such as agricultural products, fish, and industrial goods, have been eliminated or reduced.
These major trade agreements have opened up new opportunities for Philippine businesses to expand their markets, attract foreign investments, and boost their competitiveness. As the global economy continues to evolve, it is important for the Philippines to keep forging strong trade partnerships and seeking new opportunities to grow its economy.