Trade Agreements Philippines: Strides towards Economic Development
Trade agreements are essential for any country to maintain a sound economic relationship with its trading partners. The Philippines is one of the leading economies in Southeast Asia that has been actively involved in various trade agreements aimed at boosting its economic growth. These agreements have enabled the country to achieve a stable economy, create job opportunities, and promote businesses. In this article, we will take a closer look at the trade agreements the Philippines has signed in recent years and their potential impact on the country`s economic development.
The ASEAN Free Trade Area (AFTA)
The ASEAN Free Trade Area is an agreement between the member states of the Association of Southeast Asian Nations (ASEAN). The AFTA aims at promoting free trade and reducing barriers to trade among its member countries. The Philippines is one of the founding members of ASEAN, and the agreement has had a significant impact on the country`s economy.
Through the AFTA, the Philippines has experienced an increase in exports and foreign investments. The agreement has also created job opportunities and boosted the country`s competitiveness in the global market. The AFTA has enabled the Philippines to diversify its export market and increase its trade relations with other ASEAN member countries, leading to a more stable economy.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership, signed in 2018, is a trade agreement between 11 countries, including Japan, Canada, Australia, and New Zealand. The agreement aims to reduce trade barriers, promote investment, and encourage economic growth among its members.
The CPTPP is an essential agreement for the Philippines as it opens up new markets for the country`s exports. The agreement eliminates tariffs on a range of Philippine exports, including electronics, agricultural products, and apparel. The CPTPP also provides opportunities for Philippine companies to invest in other member countries. By promoting free trade and investment, the agreement helps create jobs and boost economic growth in the Philippines.
Philippines-European Free Trade Association (EFTA) Free Trade Agreement
Another significant agreement that the Philippines signed is the Philippines-European Free Trade Association Free Trade Agreement (PH-EFTA FTA). The agreement is between the Philippines and four countries: Norway, Switzerland, Iceland, and Liechtenstein. The agreement aims at promoting trade and investment between the Philippines and EFTA member countries.
The PH-EFTA FTA has provided the Philippines with access to new markets for its exports and an opportunity to diversify its export products. The agreement eliminates tariffs on Philippine products such as fruits, coconut oil, and processed food. The PH-EFTA FTA also provides opportunities for Philippine companies to invest in EFTA member countries, leading to economic growth and job creation.
Trade agreements are vital for the Philippines to maintain a sound economic relationship with its trading partners. The agreements provide opportunities for the country to create job opportunities, promote business, and boost economic growth. The Philippines has signed significant agreements such as the ASEAN Free Trade Area, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, and the Philippines-European Free Trade Association Free Trade Agreement. These agreements have enabled the country to achieve a stable economy, diversify its export market, and increase foreign investment. The country`s continued participation in these trade agreements is likely to result in a more robust and sustainable economy in the long run.