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Philippines Signs Second Protocol of ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA)

15/04/2024    68

The Philippines ratified the Second Protocol of AANZFTA to enhance trade and investment, aligning with ASEAN’s economic goals. The agreement was modernized to adapt to evolving global dynamics.

Key Takeaways

The Philippines ratified the Second Protocol of the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) to enhance trade opportunities, particularly for micro, small, and medium enterprises (MSMEs), and modernize the agreement to align with evolving global dynamics.

The Second Protocol introduces amendments across thirteen chapters, focusing on market access, integration of MSMEs into global value chains, e-commerce adoption, and collaboration on trade and sustainable development, aiming to bolster supply chain resilience.

The Investment Chapter of the Second Protocol brings improvements to investor protections, introduces new exceptions, and is expected to instill greater confidence among foreign investors, potentially leading to increased foreign direct investment in the Philippines.

Philippines ratifies Second Protocol of AANZFTA

The Philippines has officially ratified the Second Protocol of the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) in a move to boost trade and investment opportunities. The objective is to modernize the agreement and enhance market access, aligning with the country’s vision for economic collaboration within ASEAN and promoting sustainable development.

Modernizing the AANZFTA Agreement

The amendment to the AANZFTA aims to update and adapt the original agreement which came into effect in January 2010. The enhancements cover thirteen chapters including rules of origin, customs procedures, investment, competition, consumer protection, and electronic commerce. These changes are crucial to keep the agreement relevant amidst evolving global dynamics.

The Second Protocol introduces new provisions related to trade, investment, and sustainable development, emphasizing supply chain resilience, digital technology, and the flow of essential goods during crises. It also updates the Investment Chapter, offering improved investor protections and introducing new exceptions.

Revisions and Enhancements in the Second Protocol

The Second Protocol of AANZFTA includes revisions in thirteen out of its eighteen chapters, taking inspiration from the Regional Comprehensive Economic Partnership Agreement (RCEP). The Investment Chapter has undergone significant revisions, introducing key changes for investors. These revisions aim to improve and facilitate investment processes within the region.

The ratification is expected to boost foreign direct investment and economic growth in the Philippines. President Marcos Jr. expressed confidence in the adaptability of AANZFTA to address the changing business landscape and promote economic collaboration within the region. The Philippines anticipate expanded cooperation in critical sectors such as agriculture, food security, digital economy, infrastructure, tourism, and healthcare.

 

Source:Thailand Business