Philippines lags behind in forging free trade agreements

MANILA, Philippines – The Philippines is lagging behind other Asean countries in forging free trade agreements (FTAs) with total of 12, while Vietnam, Brunei and Indonesia have 14, 14 and 17, respectively.

Seven of the Philippines’ FTAs have already entered into force, while one is under negotiation and four are in the exploratory stage.

Indonesia has concluded eight FTAs. It is currently negotiating three free trade deals and is evaluating the feasibility of six planned FTAs.

Vietnam and Brunei, on the other hand, are implementing seven and eight free trade agreements, respectively.

These countries are conducting exploratory talks with four prospective FTA partners.

Meanwhile, Asia’ least developed economies such as Bangladesh (6), Sri Lanka (8), Cambodia (9), Myanmar (10) have fewer FTAs.

More countries are looking to freer trade to sustain domestic growth and rev up the fragile global economy by initiating free trade deals.

As of January 2011, the Asian Development Bank has identified 238 bilateral and plurilateral free trade agreements (FTAs) in Asia and the Pacific, an enormous leap from 54 signed in 2000. Aggressively pursuing these FTAs are the vibrant, export-oriented Asian economies in a bid to take full advantage of vast global opportunities by expanding export markets and strengthening ties with economic and development partners.

Singapore registered the highest number of free trade deals with over 35 free trade initiatives, 18 of which are already at their implementation stage. The country, Asia’s fastest growing economy in 2010 and world’s fifth richest economy by gross domestic product (GDP) per capita has nine free trade agreements that are under negotiation.

India, the world’s fifth largest market by GDP, came second with 33 free trade agreements, 11 of which are already in effect. South Asia’s most promising economy is currently considering inking nine more free trade pacts.

Other economies that are aggressively pursuing free trade deals are South Korea (28), Pakistan (26), China (25), Thailand (24), Malaysia (22), Japan (22) and Australia (21). (EHL)