RP skeptical about AFTA deal<\/p>\n
MANILA (AFP): Recession-hit local manufacturers face grim
\nprospects with the Philippines set to slash tariff lines in 11
\nmonths as part of free trade commitments, a prominent
\nindustrialist warned on Monday.<\/p>\n
\"The countdown to globalization is now with us and in 11
\nmonths, 85 percent of the tariff line items in ASEAN will be
\nreduced to 0-5 percent,\" Federation of Philippine Industries
\nchairman Raul Concepcion said in a statement.<\/p>\n
\"What this means is that just as local industries are reeling
\nfrom a severe recession, there will be a flood of cheap imported
\ngoods, thus greatly reducing the demand for local products.\"<\/p>\n
The six more developed Association of Southeast Asian Nations
\n(ASEAN) members -- Brunei, Indonesia, Malaysia, the Philippines,
\nSingapore and Thailand -- agreed in December to create a free-
\ntrade area with tariffs of five percent or less by 2002.<\/p>\n
Vietnam has until 2006 and Laos and Myanmar until 2008 to
\ncatch up with their more developed counterparts.<\/p>\n
Separately, Manila has agreed to remove all tariffs on certain
\ninformation technology products by the end of the year under a
\ncommitment with the World Trade Organization.<\/p>\n
Concepcion said industrial production in the Philippines had
\nfallen for 11 consecutive months, with sales down 16.1 percent
\nand 38.1 percent of companies operating below 70 percent of
\ncapacity.<\/p>\n
Under pressure from local manufacturers, the Philippine
\ngovernment last month adjusted import tariffs on certain textile,
\nsteel, petrochemical products for at least one year to help them
\ncope with the Asian financial crisis.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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