Trade & Investment
From The Report: Philippines 2014
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For a number of years the Philippines worked hard to lower tariff rates, with the average weighted tariff applied falling from 22.4% in 1989 to a low of 2.6% in 2003. However, rates have begun to creep up again. The Philippines is actively considering a number of liberalisations to better align itself with the more open of its regional peers and to better integrate itself with the global economy. Whether to totally open markets or to engage in a sort of low-level managed trade is a debate raging throughout the world, especially in East Asia, and this issue is very much a part of the conversation in the Philippines.
This chapter contains interviews with Gregory Domingo, Secretary, Department of Trade and Industry; Arnel Paciano D Casanova, President and CEO, Bases Conversion and Development Authority (BCDA), and Chairman, Philippine Investments Promotions Plan (PIPP) Steering Committee; and Stephen P Groff, Vice President for East Asia, South-east Asia and the Pacific, Asian Development Bank.

Articles from this Chapter

Overview

Great barrier rift: Tariffs and reform are the hot topics of debate
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In actively considering a liberalisation programme, the Philippines is hoping to better align itself with the more open of its regional peers and better integrate itself with the global economy. Reform is a top priority. At the same time, it needs to move carefully. While the country’s various impediments to trade and investment have held it back in some ways, it is becoming increasingly evident that they may have in fact helped it in the past, especially during times of severe instability…

Interview

OBG talks to Gregory Domingo, Secretary, Department of Trade and Industry (DTI)
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Interview:Gregory Domingo In what ways are the Philippines working to boost its visibility as an attractive destination for foreign direct investment (FDI)? GREGORY DOMINGO: When it comes to investments, there are two components: investments by domestic companies and investments by foreign firms. In both cases, we have seen growth in registered investments. For example, looking at registered inflows to the Philippine Economic Zone Authority (PEZA), nearly 100% of them push through whereas,…

Interview

OBG talks to Arnel Paciano Casanova, President and CEO, Bases Conversion and Development Authority (BCDA), and Chairman, Philippine Investments Promotions Plan (PIPP) Steering Committee
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Interview:Arnel Paciano Casanova To what extent can the development of economic zones and freeports drive growth outside of Metro Manila and in the broader region? ARNEL PACIANO CASANOVA: At the BCDA, we look at ourselves primarily as movers of economic development since our mandate is to transform former military bases into economic zones and freeports. In order to sustain current economic growth, we have to create these new urban and economic centres, not only in Metro Manila but also in…

Analysis

All together now: The region is moving towards the establishment of a common market, although implementation is proving to be a challenge
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ASEAN is set to declare itself a common market at the end of 2015. This could profoundly affect trade and investment flows throughout the region and have a significant impact on the economies of all member states, the Philippines included. It will create new opportunities for investors as some of the world's fastest-growing economies work together and combine their strengths, and as more and deeper exchanges between these countries begin to unlock value heretofore untapped. Since its founding…

Analysis

A vital partner: The country has a complex relationship with the giant to the north
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China is one the Philippines’ most important trading partners. In 2012 it was number three in total bilateral trade, behind the US and Japan, but it became number two by July 2013 and was number one for imports to the Philippines by that time (up from number three). The trade relationship is certainly a vital one. Yet beyond the numbers, the situation is highly complex. China is no doubt a potential market for the Philippines and a potential source of foreign direct investment (FDI), but it…

Analysis

Untangling the knots: The consolidation of FTAs could provide a spur to liberalisation efforts
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The Philippines is party to a number of free trade agreements (FTAs), many of which are overlapping, and some of which have become redundant. It is part of ASEAN’s Free Trade Area and is a signatory to many FTAs between ASEAN and other countries, such as Australia, China, India, Japan, New Zealand and South Korea. The country also has a bilateral FTA with Japan and is discussing additional FTA deals with Switzerland, Taiwan, Iceland, Norway, Lichtenstein, the EU and the US. THE NOODLE BOWL:…

Analysis

The real deal: Viewpoints differ on the country’s progress in the fight against piracy
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The international community, particularly the US, has long put a high priority on nations respecting patents and copyrights. For the Philippines, demonstrating that it is both sincere and effective in combating piracy and counterfeiting has been a challenge, and intellectual property rights (IPRs) may prove to be a sticking point as the country seeks to enter US-led trade groupings, including the Trans-Pacific Partnership. BETTER PROTECTION: The Philippines has been on the Watch List of the…

Analysis

Streamlining processes: Reducing bureaucratic obstacles to boost FDI
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While the Philippines is one of the fastest-growing economies in South-east Asia, the country lags when it comes to foreign investment, particularly compared to some of its regional neighbours. On July 10, 2013, the Bangko Sentral ng Pilipinas (BSP) released the latest foreign direct investment (FDI) data, showing a net inflow of $202m for April 2013, up 61.6% on the same month in 2012. Net equity capital inflows accounted for $131m of this figure, with the bulk of these investments coming from…

Interview

OBG talks to Stephen Groff, Vice-President for East Asia, South-east Asia and the Pacific, Asian Development Bank (ADB)
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Interview:Stephen Groff How can improving the Philippines’ resilience to climate change help promote sustainable development? How can one mitigate potential damage? STEPHEN GROFF: The Philippines ranks highest in the world for vulnerability to tropical cyclones, and third in susceptibility to floods and droughts. The destruction wrought by Typhoon Haiyan grimly illustrates this. Our research suggests that, by 2100, as much as 6% of GDP could be lost annually from climate change if measures…