Yap favors 5-year delay in AFTA implementation

MANILA, Philippines – Agriculture Secretary Arthur C. Yap said yesterday that the Philippines well do well to delay by five years the ASEAN Free Trade Agreement (AFTA) which is scheduled for implementation next year.

In an interview with newsmen, Yap said a five-year delay “may be… good… because of the recession.”

Yap pointed out that there are so many “instabilities” that make it difficult to project commodity prices and even farm inputs such as fertilizers.

He also noted that uncertainties continue to affect the global economic recovery with “the stimulus and rescue packages not even determined.”

Furthermore, Yap observed that “the West… Japan and China have not shown any signs of recovery at all.”

Thus “this is not the time to go head on and destabilize the system by unbridled trade flows,” he added.

Yap pointed out that Trade and Industry Secretary Peter Favila, has made representations to other ASEAN countries for the temporary suspension of the full implementation of AFTA by 2010.

“Secretary Favila has already said that he will make representations.We will await the results of that. We’re waiting for a suspension of the full implementation because of the recession and Sec Favila has already agreed to that. That is also my position.” –Marianne v. Go, Philippine Star