American businessmen yesterday called on the possibility of the United States and the Philippines pursuing a digital trade deal pending resolution of political issues hounding a possible free trade agreement (FTA) between the two countries.
Charles Freeman, senior vice president for Asia of the US Chamber of Commerce, told the Philippines-US Business Dialogue yesterday, both countries could explore a similar deal Washington forged with Japan.
In the same forum, Trade Undersecretary Ceferino Rodolfo said the enactment into law of the Corporate Recovery and Tax Incentives for Enterprises has generated interest from US companies in infrastructure such as third party telco towers, highly innovative projects such as those involving artificial intelligence, data centers and electronics sector trying to look at the Philippines as an alternative or complimentary location for their factories here in Asia.
Freeman said a standalone digital agreement with the Philippines would be a “model for the rest of not just the region.”
“There’s real congruency in the way that our businesses approach digital issues, and… there’s an opportunity to set the stage for what would be a win, not just for technology companies but the people that put bread on the table every day in both the Philippines and the United States,” Freeman.
Freeman was reacting to the statement in the same forum of Trade Secretary Ramon Lopez where he said he hopes the Philippines’s privileges under the US Generalized System of Preferences could graduate towards an FTA that would provide a long-term rules- based, and predictable trade environment between the two countries.
The US-Japan digital trade agreement went into force in January 2020 establishing high-standard rules in this area,addressing digital trade barriers.
Freeman was also commenting on US Commerce Undersecretary Diane Farrell’s comments on how to drill down onto the digital issues.
Farrell said digital and telecommunication services offer tremendous opportunities for growth for the US and the Philippines.
“We’ve had this on again, off again conversation about whether United States and the Philippines can enter into a free trade agreement. You know I think the politics of that still are unresolved,” Freeman said without elaborating.
Freeman said the Chamber acknowledges the tax reform undertaken by the Philippines and continues to encourage reforms on the Public Service Act and the Foreign Investments Act.
He said the Chamber is also encouraging the Philippines to focus on opportunities to increase the exports and production in the global supply chain. – Irma Isip
