The Department of Finance (DOF) has underscored the critical role of a newly formed trade facilitation body in enabling the country’s micro, small and medium enterprises (MSMEs) to participate in global trade and broaden their access to global value chains.
In a statement sent by the DOF yesterday, Carlos Dominguez, finance secretary, said the Philippine Trade Facilitation Committee’s (PTFC) primary task of streamlining trade processes and modernizing major customs operations will be beneficial to MSMEs, which often lack access to the global markets and have no financial capacity to overcome the inefficiencies of the trading system.
“Our work is especially critical for the MSMEs that often do not have the financial capacity to overcome the inefficiencies of the trading system and lack access to the global markets.
What we aim to accomplish here will allow them to actively participate in international trade and broaden their access to the global value chains,” Dominguez said during the first meeting of the PTFC Wednesday morning.
He said the spillover effects of improved trade processes and customs administration will create more jobs, bring in more possible investments, and help advance the skills and capabilities of Filipino workers and local entrepreneurs.
“All these will support the sustainable and long term growth of the economy,” said Dominguez, who was designated as PTFC chairman.
He said the expansion of the Philippines’ trade markets is among the vital factors that would aid the country’s post-pandemic recovery, which is why it is crucial for the government to continuously strive for a modern, more efficient administration of customs standards, rules and processes.
“The role of this committee is very crucial to the attainment of that goal. This committee was not just created to simply comply with our commitments under the World Trade Organization (WTO). This was formed to ensure that we remain competitive in the continuously evolving global trade landscape,” he said.
The PTFC was created through Executive Order No. 136, which was issued last May 18 by President Duterte to enable the Philippines to comply with its commitments under the WTO-Trade Facilitation Agreement (WTO-FTA).
The WTO-TFA mandates each member-state to establish and/or maintain a national committee on trade facilitation, or designate an existing mechanism to facilitate both domestic coordination and implementation of the provisions of the agreement.
Dominguez said harmonizing the Philippines’ trade processes and modernizing customs operations will allow the country to thrive in the digital economy; make trade transactions cheaper, more efficient and transparent; enhance revenue generation; and allow the government to pinpoint sources of administrative inefficiencies and corruption.
These will also lead to a more conducive trading environment for businesses, which, in turn, will increase the country’s trade volumes and reduce costs for both consumers and producers, he added.
