A REVIEW of the possible benefits of joining the proposed Trans-Pacific Partnership Agreement (TPP) will be accelerated by the Philippines now that negotiations for Mexico and Canada’s entry have picked up.

Exporters are also urging the Aquino administration to hasten the country’s TPP bid, saying competitors who become members could move into the prime US export market.

"Joining the TPP has always been important to the country mainly because of the United States which is one of our largest trading partners," Trade Undersecretary Adrian S. Cristobal yesterday said.

"Now with the entrance of the emerging market of Mexico and of Canada, we are more serious in pursuing this," he added.

The Office of the United States Trade Representative is currently seeking comments on both countries’ bids -- announced in June -- to join the TPP deal that is being pushed by Australia, Brunei Darussalam, Chile, Malaysia, New Zealand, Peru, Singapore, Vietnam, and the US.

A decision to enter into TPP negotiations will not be taken lightly Mr. Cristobal said.

"If we do decide to join we have to move as quickly as we can but engaging with nine states, potentially 11, requires a lot of preparation. Negotiations have to be almost simultaneous, we need to do research, call for comments as well as look at our constitutional framework," he said.

The government has said an in-depth study would be made but this review has yet to be commissioned.

"The in-depth study should answer whether the expanded TPP membership will be better for us," said Mario Jose E. Sereno, head of the Federation of Philippine Industry’s International Trade Policy Committee.

Exporters are wary that not joining could mean lost market share given similarities in products exported by Mexico.

"We are late in having bilateral trade agreements. Mexico has a lot of similar products to us and we might be at a disadvantage if we don’t join the TPP soon," Philippine Exporters Confederation, Inc. President Sergio R. Ortiz- Luis, Jr. said.

George N. Manzano, economist at the University of Asia and the Pacific and a former tariff commissioner, for his part said that "there may be some similar products between the Philippines and Mexico but there are different supply chains and we have access to many countries in the TPP through other agreements."

August 27, 2012

Source: Bworld Online

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