The Philippines has long been a significant player in international trade, thanks to its strategic location, growing economy, and valuable natural resources. With a population of over 100 million, the country has a large and diverse market that attracts both local and foreign investors. One of the ways that the Philippines has strengthened its trade relationship with other nations is through trade agreements. In this article, we`ll discuss some of the different trade agreements that the Philippines is a part of and their significance.
ASEAN
The Association of Southeast Asian Nations (ASEAN) is a regional intergovernmental organization that promotes economic integration and cooperation among its member countries. The Philippines is one of the founding members of ASEAN and has been an active participant in its efforts to promote free trade and investment in the region. ASEAN offers a large market for Philippine goods and services and provides opportunities for businesses to expand their operations across borders.
AFTA
The ASEAN Free Trade Area (AFTA) is a regional free trade agreement that was established in 1992. The objective of AFTA is to reduce tariffs and non-tariff barriers among ASEAN member countries. This allows for the free flow of goods and services within the region and promotes economic growth and development. The Philippines, along with other ASEAN member countries, has benefited from AFTA by increasing its trade with other countries in the region.
APEC
The Asia-Pacific Economic Cooperation (APEC) is a forum of 21 member economies that promotes regional economic integration and cooperation. The Philippines has been a member of APEC since 1989 and has benefited from the forum`s initiatives on trade and investment liberalization, business facilitation, and economic and technical cooperation. APEC has also provided the Philippines with a platform to engage with other major economies in the Asia-Pacific region, including China, Japan, and the United States.
FTAAP
The Free Trade Area of the Asia-Pacific (FTAAP) is a proposed regional free trade agreement that aims to create a free trade area among the 21 APEC member economies. The FTAAP is still in the early stages of development, but if implemented, it could provide significant benefits to the Philippines, such as increased market access for its goods and services and the promotion of regional economic integration.
EU-Philippines FTA
The European Union (EU) is a major trading partner of the Philippines, with bilateral trade amounting to over €13 billion in 2020. The EU-Philippines Free Trade Agreement (FTA) is a proposed agreement that aims to eliminate tariffs and other barriers to trade between the two regions. The FTA could provide opportunities for Philippine exporters to access the large EU market, while also attracting more EU investments to the country.
Conclusion
Trade agreements play a crucial role in promoting economic growth and development by reducing barriers to trade and investment. The Philippines` participation in regional and bilateral trade agreements, such as ASEAN, AFTA, APEC, FTAAP, and the EU-Philippines FTA, has provided the country with opportunities to expand its market, attract more foreign investments, and promote regional economic integration. As the country continues to grow and develop, it is essential to maintain and strengthen its trade relationships with other countries to ensure sustainable economic growth.