Philippine Government Says FTA Discussions With US Could Start if Issues Resolved

The Philippine government said that the late May meeting between Deputy U.S. Trade Representative Jeffrey Gerrish and senior Philippine economic ministers and senators was laying the groundwork for the "scope, timing and process" that could lead to a free trade agreement between the two countries. A statement from the Philippine government released July 9 said the May talks "centered on America’s interest in initiating 'informal preparatory meetings'" that could be the beginning of FTA negotiations.

The U.S. is not willing to open negotiations until the Philippines changes some of its customs processes; allows for an open, competitive market for e-payment services; reforms its intellectual property rights protections; and resolves the US concerns on rice, meat rice and poultry, the statement said. The Philippine government quoted Gerrish as saying "the US is 'prepared to move forward' and proceed 'to high-level discussions in the near future' to determine how these concerns should be addressed, possibly through a series of agreements between the two countries."

The Office of the U.S. Trade Representative put out a statement after the May 23 meeting that did not address either the specific barriers to a trade agreement or the interest in starting negotiations after concerns are resolved. Instead, that statement quoted Gerrish as saying: "We look forward to resolving outstanding issues and exploring the best arrangement for strengthening and expanding our trade relations."

He did say that President Donald Trump welcomed President Rodrigo Duterte's interest in negotiating a potential free trade agreement, and said the talks addressed how to "resolve outstanding priority market access issues and to consider next steps." Philippine Finance Secretary Carlos Dominguez II said his country is concerned over the U.S.-China "trade spat," which he said would benefit the Philippines in the short term "but would lead to negative repercussions felt by economies across the globe if the feud worsens."