Swiss companies looking to expand their markets can leverage the Philippine European Free Trade Association (PH-EFTA) free trade deal that was signed in 2018.
Trade Undersecretary Ceferino Rodolfo cited an analysis by Professor Patrick Ziltener of the University of Zí¼rich which said the deal has generated savings for companies and improved trade.
EFTA is composed of Iceland, Liechtenstein, Norway, and Switzerland.
Ziltener said before the deal came into force, Swiss companies paid $10.5 million in duties on $226.7 million in exports per annum in 2017.
In 2018, the year prior to entry into force of the PH-EFTA, the Philippines had a trade deficit vis-í -vis the EFTA countries to the tune of about $61 million. On the first full year of implementation in 2019, this turned
to a surplus of $47 million, according to Rodolfo
When the deal came into effect in 2018, Swiss companies exporting to the Philippines managed to save roughly $234,000, but still shelled out $7 million in duties, Ziltener’s study showed.
In 2019, the year completely covered by the FTA, the utilization rate of PH-EFTA was around 14 percent and low on a product-by-product basis, with food preparation and pharma having low utilization rates, while textiles, many metal products, and machines at zero.
