Philippine exporters are encouraged to take advantage of the opportunities presented by the Free Trade Agreement (FTA) between the ASEAN, Australia and New Zealand.
In addition to new market access, the Agreement provides greater transparency and certainty for companies doing business in the region. Through its various review provisions, the Agreement will also remain a ‘living’ document that will continue to have ongoing commercial relevance.
According to the Department of Trade and Industry (DTI), the FTA brings a number of benefits to the Philippines, primarily the improved market access to the Australian and New Zealand economies.
The FTA also allows the Philippines to have equal footing with Thailand which has a bilateral FTA with Australia. In 2010, 96.4% of all tariff lines of Australia will be at zero percent rates. Starting January 1, 2010, a number of major Philippine exports to Australia, like automotive parts, including ignition wiring harness, batteries, wheels and tires, yachts and vessels for transport, and agricultural products such as canned pineapples and tuna, will enjoy zero tariffs. On the other hand, 84.7% of New Zealand’s tariff will have zero rates in 2010. By 2020, practically all sectors would benefit when Australia and New Zealand eliminate tariffs on all products. Philippine merchandise exports to Australia amounted to US$ 471 million in 2008 while exports to New Zealand were placed at US$ 48 million.
DTI Secretary Peter B. Favila signed The Agreement Establishing the ASEAN–Australia–New Zealand Free Trade Area (AANZFTA) last year on the occasion of the 14th ASEAN Summit on 27 February 2009 in Cha-am, Thailand. (PNA)
DCT/BAC/utb
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