RP seeks to abolish import tariffs

RP seeks to abolish import tariffs

MANILA: The Philippines wants import tariffs on the trade of electronics and semiconductor products among Association of Southeast Asian Nations (ASEAN) members be abolished by next year, Trade Secretary Cesar Purisima said.

The proposal is to be put forward during a meeting of ASEAN economic ministers in Singapore later this week, Purisima said. Electronics account for nearly 70 percent of Philippine exports.

"We are pushing the electronics industry to take the lead in boosting trade and the integration of the region into a one- market environment," Purisima said in a statement.

"The proposal is a bold step because if approved we will be the first among the 11 sectors to have zero tariffs by next year."

Purisima was referring to 11 key sectors whose import tariffs the ASEAN economic ministers agreed to slash during a meeting in Cambodia last year.

Zero tariffs on electronics could lead to lower costs of production, making ASEAN electronics and semiconductors more competitive, Purisima said.

He said that most ASEAN countries, except Singapore and Malaysia, are not equipped now with a "strong supplier base" to support the manufacturing of individual electronic firms.

However, he said ASEAN could "collectively take advantage of its competitive strengths by adopting an industry clustering approach and act as a single production base with zero tariffs, harmonized and mutually-recognized standards and paperless exchange of goods."

Then, "like China, ASEAN can likewise present itself as a supplier base and manufacturing platform and offer more competitive production costs that will be attractive to foreign investors," he said.

According to Purisima, the ASEAN meeting will tackle major issues on the integration of various industries in the region, he said. --AFP