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Philippines
Thursday, March 28, 2024

PH, India eyeing trade agreement to reinforce ties

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The Philippines and India agreed to consider a preferential trade agreement with the potential of forging a better strategic partnership in the face of the global pandemic.

A PTA is a bilateral agreement that aims to reduce and eliminate tariffs on products of mutual interests.

Both countries agreed during the 13th Meeting of the Joint Working Group on Trade and Investments that the bilateral approach would be best to address their respective sensitivities.

“A more focused approach like a PTA is more practical. The Philippines is eager to conclude one with India not only to improve current trade levels in terms of value and volume but also in the breadth of products to be covered as current trade is highly concentrated on a few products,” said Trade Undersecretary Ceferino Rodolfo.

India’s Joint Secretary Anant Swarup said “India recognizes the benefits of negotiating a PTA with the Philippines” and called for both countries to consult authorities and secure the mandate for the PTA negotiations.

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The meeting focused on initiatives that will bring about synergies in various sectors such as textiles, electronics like smart manufacturing and digital technologies; IC design and electronics system design manufacturing; IT-BPM on telemedicine, health information management, software development and IT solutions; and online learning, energy and agriculture.

Recognized as the “pharmacy of the world,” India was also encouraged to consider opportunities in the manufacture of active pharma ingredients, vaccines and essential medicines and establishment of R&D facilities for herbal medicines.

Rodolfo said the Philippines still has a traditional view of India. “This mindset has to change given the vast opportunities for collaboration that remain untapped,” he said.

Swarup shared the same view, saying that “both sides share in each other’s total trade is negligible, from only about 0.3 percent to 1 percent, hence the full potential of the relations is yet to be reached.”

Relevant trade and investment promotion agencies from both sides are now gearing up to pursue concrete initiatives for an enhanced promotion of trade and investment between the two countries.

India was the Philippines’ 14th largest trading partner, 17th export market and 13th import supplier with total trade of $2.4 billion in 2019. India was also the 8th largest source of approved investments at P915.64 million.

The JWGTI serves as DTI’s dedicated platform to discuss trade and investment issues, proposals for economic cooperation and concerns on the business environment.

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