Former National Economic and Development Authority director general Cielito Habito said the Philippines is equipped with the right tools to join the new emerging trade bloc in the Pacific.
“The Philippines is well-positioned to seize opportunities in the Trans-Pacific Partnership, given our experience and commitment to participate in various international fora and our pursuit of mutually beneficial trade agreements in the Asia-Pacific region and Europe,” said Habito in a forum on TPP held recently at the Dusit Hotel in Makati City.
Habito also heads the USAID-funded Trade-Related Assistance for Development project.
Habito said a study made by economist and former dean of the University of the Philippines School of Economics Ramon Clarete had projected that a TPP membership could increase the country’s exports by up to 42 percent and the gross domestic product by up to 59 percent.
Habito stressed the country’s membership in TPP would present substantial opportunities for broad-based growth and diversification of the economy. Non-membership, meanwhile, will lead to significant job losses as trade and investments are diverted away from the Philippines to other similar neighbors which are already part of the agreement.
The business sector maintains a confident perspective on the Philippines’ ability to seize the opportunities and address the challenges when the country decides to join the TPP.
Signed in early February, the TPP is an ambitious and balanced agreement that inlcudes 12 member countries—Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, United States and Vietnam.
Its members have a combined population of 800 million, a gross domestic product of $28 trillion, about 40 percent of the global GDP, $9 trillion in merchandise trade and $2 trillion in trade of services, or 30 percent of the world trade.
The Trade Department sees the TPP as a significant component of the Philippine international trade strategy and indicated the country’s intention to join the regional trade group.
The Philippines previously conducted technical discussions with Malaysia, the US, New Zealand, Australia, Mexico and Canada. It recently signed a comprehensive bilateral agreement with Australia and gained Canada’s support to help the Philippines accede to TPP during bilateral meetings at the Apec Summit.
The US also pledged to support the Philippines’ bid for TPP membership.
The Philippines will need an endorsement from the 12 members of the trade agreement to become part of the TPP.
The Trans-Pacific Partnership is a landmark agreement that eliminates or reduces tariffs, lowers the cost of trade and sets new and high standards for global trade while addressing next-generation issues.