RP committed to AFTA

RP committed to AFTA

MANILA (AFP): The Philippines' commitment to a Southeast Asian free trade area is "total" despite challenges resulting from the regional financial crisis, the country's chief economic planner said Thursday.

"Our commitment to a single ASEAN market is total," Economic Planning Secretary Felipe Medalla said in a conference sponsored by the foreign correspondents' club here, referring to the Association of Southeast Asian Nations Free Trade Area (AFTA).

"We cannot bring up tariffs again just to save businesses which are sinking," he added.

Medalla cited the case of National Steel Corp. which was forced to shut down late last year due to heavy debts. The government rejected the company's appeal to raise import tariffs on steel products.

Under the AFTA scheme, ASEAN's more developed economies of Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand have agreed to bring down tariffs to zero-to-five percent on most products by 2002.