The Philippines, the United States, and Japan are eyeing a trilateral free trade agreement to deepen their economic partnership moving forward, an envoy said on Wednesday (US time).
In an interview with the Philippine media delegation in Washington DC, Philippine Ambassador to the US Jose Manuel Romualdez said Trade Secretary Alfredo Pascual is set to meet with his counterparts to discuss a possible trilateral FTA.
“We are looking at that seriously. We have been working with our attache here to push for specific free trade agreements,” Romualdez said.
“I think the United States is more inclined to go into specific sectors for FTAs, but the Indo-Pacific Economic Framework (IPEF) — which the United States initiated and of which we are a founding member — is looking at including the entire ASEAN region,” Romualdez said.
US Trade Representative Ambassador Katherine Tai said last April that a bilateral FTA with the Philippines was not discussed since the US government was focused on the IPEF initiative.
The IPEF is a US-led framework for participating countries to strengthen their relationships and work on important economic and trade issues that affect the region, such as rebuilding supply chains.
It’s not a deal for free trade. There have been no plans for market entry or lower tariffs, but trade experts say this could lead to trade deals.
Free trade agreements, on the other hand, lower or get rid of barriers to trade between parties, such as taxes and quotas on goods that can be imported and exported.
The latest data from the Philippine Statistics Authority showed that the United States bought $902.33 million worth of Philippine goods in January 2024, which was 15.2 percent of all Filipino goods sold.
Improved ties
Japan came in second with $869.25 million. Last month, Japan shipped $789.36 million worth of goods to the Philippines, making it the second largest exporter to the country after China, which sent $2.65 billion worth of goods. The US came in fifth with $671.86 million.
In the same briefing, White House National Security Adviser John Kirby said leaders of the three nations are improving their economic, political, and security ties.
“Our three countries embark on this new era of trilateral cooperation as trusted, equal partners guided by shared values and an unwavering commitment to a free, open, peaceful and prosperous Indo-Pacific,” he said.
“With President Marcos’ visit, the trilateral summit and, of course, the visit today of Prime Minister Kishida will clearly illustrate President Biden’s continued commitment to strengthening our key alliances and partnerships in the Indo-Pacific, innovating around shared challenges and exploring new areas of cooperation,” he added.
