The Philippines aims to replicate its successful program intended to maximize the benefits and privileges free trade agreements (FTA) offer in a bid to achieve $122 billion in exports by 2022.

Department of Trade and Industry (DTI) Undersecretary Nora Terrado said the implementation of Doing Business with FTA (DBFTA) illustrates how trading arrangements can be maximized.

“DBFTA is viewed by traders, exporters and other businesses as access points to specific markets,” she said.

Terrado noted a dedicated program such as DBFTA can be a vehicle for both advocacy and promotion in specific trading arrangements and markets.

“Ultimately, these will expand market access and diversify export products through strategic trade partnerships in the process of bilateral, regional and global integration,” she added.

Exploiting existing and prospective opportunities from trading arrangements are among the three key strategic agenda identified under the Philippine Export Development Plan (PEDP) 2018-2022, which is up for approval of President Rodrigo Duterte.

Other strategies involve improving the overall climate for export development and designing comprehensive packages of support for selected products and services sectors.

Terrado pointed out that movements of the real exchange rates and real interest rates are of special concerns to exporters along with other macroeconomic variables.

“For instance, maintaining a market-oriented exchange rate tends to uniformly encourage exports, naturally protect and promote domestic-import-substituting industries, reduce trade deficits and accumulate international reserves,” she said.

Terrado further said part of PEDP 2018-2022 Strategy 3 recognizes the larger Inclusive Innovation Industrial Strategy (i 3S) as foundation for integrated industrial development where inter-related industries feed on each other both in the domestic and international markets.

“The broad product groups have to be expanded into specific products to test the comparative advantage and competitiveness in their exports,” she said. “These require ensuring sufficient supply capacities through domestic policies and programs and connectivity to global value chains.”