Missing piece in unlocking FTAs: PHL competitiveness

THE PHILIPPINES has been on a free-trade agreement (FTA) negotiating spree in anticipation of shifting trade patterns in the wake of the disruption brought by the US tariff regime.

- By Justine Irish D. Tabile Reporter

Getting exporters to fully utilize the advantages on offer from FTA partners is another matter.

Since 2022, the Philippines has signed on to two major FTAs: the Regional Comprehensive Economic Partnership (RCEP) and the Philippines-South Korea trade agreement. The two deals brought the Philippines’ active FTAs to 11, according to the Department of Trade and Industry’s (DTI) FTA portal.

Nevertheless, exports continue to lag those of the other ASEAN economies, like Indonesia, Thailand, Myanmar, and Vietnam.

According to ASEANstats, the Philippines posted the sixth-most merchandise exports in 2023 within the bloc at $72.9 billion. That was the year RCEP entered into force for the Philippines.

The top exporter in the region was Singapore with $475.9 billion in 2023, followed by Vietnam ($353.1 billion), Myanmar ($312.6 billion), Thailand ($284.6 billion), and Indonesia ($258.9 billion).

Enunina V. Mangio, outgoing president of the Philippine Chamber of Commerce and Industry (PCCI), said that “while the country has an extensive network of FTAs, utilization on the export side remains low.”

Based on recent research commissioned by the PCCI, many exporters face persistent challenges such as limited awareness of FTA benefits, complex rules of origin and certification procedures, and high domestic costs related to production, logistics, and regulatory compliance, she said via Viber.