Phl, Chile to seal trade pact next week

The Philippines and Chile will seal a free trade agreement next week, opening a new gateway for Filipino exporters to penetrate South America as the government moves to expand market access and reduce reliance on traditional trading partners.

Trade Secretary Cristina Roque confirmed on Thursday that the Philippines-Chile Comprehensive Economic Partnership Agreement (CEPA) will be signed on Thursday, 19 November, during the Asia-Pacific Economic Cooperation meetings.

“We will be signing a very important free trade agreement, which is the Philippine-Chile CEPA, which will be signed on November 19 at the APEC meeting,” Roque told reporters during a press conference.

“So again, this will open the huge South America market of 440 million people,” she added.

The agreement is expected to give Philippine businesses another avenue to expand their overseas presence, particularly as the government pushes to reduce dependence on traditional export markets.

Key priority of the administration

Roque said expanding the country’s network of trade agreements remains a key priority of the administration.

The planned signing followed a strong performance by Philippine exporters, with merchandise shipments reaching $73.9 billion from January to September, up 17.2 percent from the same period last year, according to figures cited by Roque.

She said exports grew 35.6 percent in September, marking the strongest growth recorded since 1991.

“Semiconductors, minerals, automotive parts, and electronics still dominate the export industry, but we see a lot of potential in the agriculture sector,” Roque said.

Emerging export products

Coconut exports rose 34.4 percent, while pineapples and bananas continued to register gains. Roque also identified ube and calamansi as emerging export products with potential to penetrate more international markets.

On the investment front, Roque said the Philippine Economic Zone Authority approved P309.6 billion worth of investments from January to October, up 76.6 percent year-on-year.

The Board of Investments, meanwhile, approved P900 billion in investments from January to September, representing a 53-percent increase from the comparable period last year.

These investments are expected to strengthen domestic manufacturing, support export-oriented industries and generate employment.