New Age FTAs: Is the Philippines Mature Enough? Synthesis and Recommendation Erlinda M. Medalla Feb 10, 2012 Dusit Hotel

1. New Age FTAs: Is the Philippines
Mature Enough?
Synthesis and Recommendation
Erlinda M. Medalla
Feb. 10, 2011
Dusit Hotel

2. New Age FTA: Is the Philippines mature
enough?
Differentiate with: whether forging such FTAs
would be beneficial.
• Mature enough to study and recognize
benefits and costs?
• Mature enough to get a good deal? Deal with
domestic concerns on the one hand and
negotiate wisely with prospective partners?
• Mature enough to take advantage of
opportunities and overcome challenges?

3. Mature enough to take advantage of
opportunities and overcome challenges?
• While important, the first two are not the
more critical issues:
– Thailand has become a ‘pro’, Indonesian learned
quickly, Philippines has learning experience from
PJEPA
– This workshop is also a good indicator
• Third is much more difficult and ambitious.
This is the bottom line.

4. ‘New Age FTAs’
• Free flow of goods, services and investment.
Cooperation elements and capacity building
• It’s not just about trade and market access.
• Ultimately, it’s about economic reforms: for both
or all partners
• This is well recognized in the case of Korea: the
main objectives of FTAs are:
– To secure market access and (2) to enhance
transparency and predictability.
• This is true as well in the case of Japan- also for
domestic reforms.

5. Impact on Governance
• two way:
– good governance would help maximize benefits from
FTAs
– at the same time, FTAs could contribute to good
governance (not just because of the need for it , made
even more obvious and urgent because of joining an
FTA, but because of the development cooperation
initiatives ‘new age’ FTAs make possible.
• This is especially true for regional FTAs- with
added peer pressure to implement reforms.
Learn from best practice

6. Impact on Governance
• Examples that this is happening are in the areas
discussed in this workshop: customs administration
and competition policy
• In customs –National Single Window, eventually
leading to the ASEAN single window – very much a part
of good governance.
– The Philippines is hard pressed to make headway in
customs reforms.
• ASEAN cooperation in competition policy
• These are two very difficult areas for reforms
• FTAs- Use in conjunction with strategic industrial policy
– Not just as defensive mechanism

7. Concluding Remarks
• It is not just about trade and market access. It
is also very much about economic reforms and
improving governance
• Consistency with WTO in the long-run should
always be kept in mind.
• Managing risks to ensure FTAs become
building blocs

8. Recommendations
• Improve intra and intergovernmental
coordination mechanisms for coordinated policy
decision making process;
• Enhance participation of private sector through
business advocacy, consultation, observer status
in negotiations; and
• Networking of negotiators, academe/experts and
business/industry sector as well as civil society
• Linked with call for increased transparency

9. Recommendations
• Continue domestic reforms – infrastructure
and logistics, trade facilitation
• Need for capacity building, information and
advocacy-
– Research
– Advocacy– information and education
– Negotiating capability—HB 56?