EFTA countries sign Free Trade Agreement (FTA) with the Philippines

[-:Undertaker:-]

http://www.efta.int/Free-Trade/news/EFTA-States-and-Philippines-sign-Free-Trade-Agreement-128286

EFTA countries sign Free Trade Agreement (FTA) with the Philippines

Non-EU Switzerland, Norway, Iceland and Liechtenstein complete and sign FTA with the Philippines in under a single year


http://www.efta.int/sites/default/files/images/news/2016-04-28-efta-philippines-all-1.jpg


Ministers and other Representatives from the Member States of the European Free Trade Association (EFTA) – Iceland, Liechtenstein, Norway and Switzerland – and from the Philippines signed a Free Trade Agreement (FTA) today in Bern, Switzerland.

Building on a Joint Declaration on Cooperation signed by the EFTA States and the Philippines in the Westman Islands, Iceland in June 2014, FTA negotiations were launched in March 2015 and concluded in February 2016.

The EFTA-Philippines FTA has comprehensive coverage, including trade in goods (industrial and agricultural goods, fish and other marine products), rules of origin, trade facilitation, SPS, TBT, trade in services, investment, competition, protection of intellectual property rights, government procurement and sustainable development. A Joint Committee will oversee the implementation of the FTA. The Agreement will enter into force after completion of the necessary internal procedures for ratification by the Parties.

The Representatives of both the Philippines and the EFTA States noted the close and significant economic relations between both sides. They underlined, that the signing of the FTA represented an important step in further strengthening this relationship. The preferential market access and the rules and disciplines governing the economic relations between the Parties under the FTA will supplement the economic cooperation and exchanges in the Joint Declaration on Cooperation, thus providing a stronger stimulus for the further development of trade and investment.

Economic relations between the EFTA States and the Philippines

Merchandise trade between the EFTA States and the Philippines has increased at an average annual rate of 11% between 2005 and 2015. In 2015, total merchandise trade between the EFTA States and the Philippines was valued at USD 863 million, with EFTA’s exports to the Philippines amounting to USD 407 million and exports from the Philippine to the EFTA states reaching USD 456 million. EFTA’s key exports to the Philippines were pharmaceuticals, clocks and watches, and machinery while EFTA’s imports mainly consisted of precious metals, electrical machinery and medical instruments. Philippine exports to EFTA include gold, electronic parts and dental prosthesis.

EFTA as a trade partner

With a combined population of over 13 million and a combined GDP of USD 1.2 trillion, the EFTA States are the world’s 9th largest merchandise trader and the 5th largest trader in commercial services, as well as significant actors in the area of foreign direct investment. They now have 27 FTAs with a total of 37 partners outside the European Union.

The Philippines as a trade partner

The Philippines is amongst the fastest and most resilient economies in Asia with over 100 million consumers. The Philippines ranks 37th in merchandise trade and 21st in commercial services trade. The Philippines has preferential trade agreements with the ASEAN Member States, Japan, China, Korea, Australia, New Zealand and India.

If Britain votes to leave the EU this June, EFTA could well be one of the trade blocs we'll join. EFTA is purely economic as an organisation so the canny Icelanders, Swiss and Norwegians get together to hammer out very free market FTAs but don't try to make laws for eachother. Common sense really.

Meanwhile the EU hasn't even got an FTA with the Philippines. All that talked-about-but-never-proven "influence" there for you in action.

Thoughts?

[AgnesIO]

Whilst I am unsure how the process is developing, the Eu hasn't got an FTA with the Philippines because the EU didn't even attempt to get one until December 2015 (9 months after the EFTA decided that they wanted one). Evidently, it wasn't top of the list of priorities. Talks for an FTA are now ongoing, however only started around 4 months ago; it took the EFTA 11 months to get one.

So, really, are you really surprised that we haven't yet got one?

[-:Undertaker:-]

Whilst I am unsure how the process is developing, the Eu hasn't got an FTA with the Philippines because the EU didn't even attempt to get one until December 2015 (9 months after the EFTA decided that they wanted one). Evidently, it wasn't top of the list of priorities. Talks for an FTA are now ongoing, however only started around 4 months ago; it took the EFTA 11 months to get one.

So, really, are you really surprised that we haven't yet got one?

I am surprised yes because we're consistently told how being part of the EU is so great "becuz influence" yet there is never any evidence of this mysterious influence. And are you really claiming the EU is incapable of negotiating with more than one country at a time?

[AgnesIO]

I am surprised yes because we're consistently told how being part of the EU is so great "becuz influence" yet there is never any evidence of this mysterious influence. And are you really claiming the EU is incapable of negotiating with more than one country at a time?

But why are you surprised? It took a small group of countries 11 months to get a deal... what makes you think the EU can do it in 40% of the time and get the same terms?

[-:Undertaker:-]

But why are you surprised? It took a small group of countries 11 months to get a deal... what makes you think the EU can do it in 40% of the time and get the same terms?

Time will tell my friend.

If I had to put money on it I would say the EU won't have it completed in a years time let alone two, three years going by past/current FTAs it is negotiating. I could be wrong of course and it could do it by summer, but going by past and present form it takes a very long time and the deals are minimal in coverage.

[AgnesIO]

Time will tell my friend.

If I had to put my money on it I would say the EU won't have it completed in a years time let alone two or three years going by past/current FTAs it is negotiating.

I imagine you are right; although we can't predict the future.

Having said that, as I referred to in another thread, we can look at the time it took Australia and South Korea to bang out a deal, and how long it took the EU to get the exact same terms. 20 years vs 5 years; impressive.

[-:Undertaker:-]

I imagine you are right; although we can't predict the future.

Having said that, as I referred to in another thread, we can look at the time it took Australia and South Korea to bang out a deal, and how long it took the EU to get the exact same terms. 20 years vs 5 years; impressive.

Indeed it often depends on the countries negotiating the deals and what barriers they're both willing to put down. But that's my entire point in all of this: Britain is a very free market and global open economy compared to say France and some others which are more protectionist. I just do not understand the logic in tying ourselves to the demands of French farmers when we could easily sign FTA's with our Commonwealth friends that would bring us cheaper food and benefit African farmers.

I prefer flexibility and open trade at the top table of the WTO to being part of a 1950s style monolithic customs bloc.