MANILA, Philippines – The Philippines would have to ease restrictions in the economic provisions of the Constitution for it to be able to join the Trans-Pacific Partnership (TPP), an emerging trade bloc that accounts for a third of world trade, foreign business leaders said yesterday.
Peter Wallace of the Wallace Business Forum, and John Forbes, senior advisor to the American Chamber of Commerce in the Philippines, in separate interviews said joining the TPP would allow the country to expand its markets in existing trade partners or open up new ones as membership in the bloc grows.
Joining the TPP was one of the topics discussed by President Aquino and US President Barack Obama during their recent bilateral meeting in Malacañang where they agreed to find ways for the country in participate in the trade bloc.
The TPP members include Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, the US, and Vietnam, which are estimated to have a combined Gross Domestic Product (GDP) of $28 trillion and account for about a third of all world trade.
South Korea, Thailand, Indonesia and Japan are reportedly set to join the TPP.
“I think it has been proven in the last 30 years that opening up the economy works and where that has been done led to a vibrant economy,” Wallace told The STAR. “Joining the TPP is something we cannot avoid or we will be left behind even further.”
“If we really really want to join the TPP, we must send a strong message that we welcome investments,” he said.
Forbes said the 12 negotiating partners of the TPP have differing foreign equity rules, but these did not prevent them from participating in discussions for the new free trade agreement.
He said there is a chapter in the agreement that calls for the free flow of capital across members and countries negotiating for inclusion in the TPP and that they would have to commit to eventually remove any restrictions or barriers to investments.
He said negotiations to be part of the TPP differ from country to country. “Malaysia and Vietnam have their laws (on foreign investments), but they have become bolder and continue to negotiate,” Forbes said.
“Certainly, being part of the TPP would increase the GDP of the Philippines over the long term as we have seen in economies of other free trade areas,” he said.
Forbes and other business leaders earlier told the House Committee on Constitutional Amendments that the Philippines would miss a major opportunity for growth if it does not join the TPP.
“There is a global supply chain included and interconnected, and you cannot be outside this trading group,” he told lawmakers.
The committee had approved the resolution of both Houses (authored by Speaker Feliciano Belmonte Jr.) which seeks to insert the phrase “unless otherwise provided by law” in various sections of Articles XII (national economy and patrimony), XIV (education, science and technology, arts, culture and sports), and XVI (general provisions).
This means the constitutional restrictions would remain until Congress passes specific amendments and is approved in a nationwide plebiscite.
The resolution is expected to be voted upon in plenary when Congress resumes session tomorrow. –Paolo S. Romero (The Philippine Star)
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