Cost of doing business, navigating international rules hindering wider Philippine utilization of trade deals

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EXPORTERS lack the knowledge to tap trade agreements and face a higher cost of doing business in the Philippines, rendering their products uncompetitive relative to other countries’ exports, a business group said.

“Once we have increased to a higher value, be it agricultural or electronic products… the other thing that I think the government must be aware is the cost of compliance and permits,” he said. “The continuing program is for advocacy and education so that exporters can avail of the preferential arrangements and other businesses can be encouraged to export or even do business in other countries,” he added.

The Philippines was threatened with the loss of its GSP+ status during the Duterte administration due to European concern over extrajudicial killings and alleged human rights violations. “Since its implementation in the Philippines only started in June, it would still be too early to gather and process data. We are coordinating with concerned agencies to gather relevant data for purposes of monitoring,” he said.

“With the entry of more Chinese and Australian investors, we can expect these locators to be exporting their products and services back to their principal headquarters or to other RCEP member countries to take advantage of the lower trade barriers and improved market access from trading partners,” Mr. Panga said.

In the first 11 months, PEZA approved P16.56 billion in investments from EU member countries, sharply higher compared with the P2.44 billion in approvals a year earlier. “I think there is a lot of work for us to do in terms of making the European market better known, but the companies also need to inform themselves because all the materials are there,” he said.

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