EFTA’s Free Trade Deal awaits Senate approval

Rodney N. Artida | January 9, 2018

President Rodrigo Roa Duterte has submitted to the Senate for consideration regarding his ratification of the Free Trade Agreement between the Philippines and under EFTA (European Free Trade Association) the regional trade organization of Iceland, Liechtenstein, Norway and Switzerland.

The PH-EFTA FTA covers trade in goods, services, investment, government procurement, intellectual property rights, competition and sustainable development.

Upon entry into force, the PH-EFTA FTA will provide the Philippines duty-free market access to all industrial and fisheries products to the EFTA member states, with the Philippines benefiting from liberal rules of origin requirements to qualify for preferential treatment.

The EFTA member states made offers in all categories of services sectors in all modes of supply which present opportunities available to Philippine service suppliers for both skilled workers and professionals.

Once ratified by the Senate, the Department of Trade and Industry anticipates that the effect of this trade deal with four of the world’s most developed economies can be felt immediately although experience would show that outcomes of most FTAs become noticeable only after a year or two.

The Philippines is eyeing at benefiting from EFTA’s vast industries in the sector of shipbuilding, iron and steel, automotive and automotive parts and components, and aerospace and information technology-business process management (IT-BPM), and chemicals.

The Philippines expects potential exports in creative arts production which include editing, sound mixing, dubbing, animation, and computer graphics.

Vietnam, Thailand, Malaysia, and Indonesia are also negotiating FTA deals with the rich EU bloc. Singapore has an existing FTA with EFTA.