RP will stick with AFTA

RP will stick with AFTA

The Philippines will cut tariffs on schedule with its ASEAN Free Trade Area (AFTA) commitments despite industry calls for continued protection, the trade secretary said in a report Monday.

"The president's posture is that we will abide by our international commitments," Trade Secretary Manuel Roxas was quoted as saying in Manila the BusinessWorld newspaper.

Under AFTA most countries in the 10-member Association of Southeast Asian Nations (ASEAN) must cut import tariffs to a maximum of five percent by 2003.

Roxas said, "We will review (tariff reductions), avail of remedies and comply with our international agreements. There is no inconsistency in these three imperatives."

Many local industries have been demanding that the government give them continued protection against AFTA-mandated tariff cuts.

Last month Roxas told an AFTA council that the Philippines would delay the liberalization of its petrochemical industry, a move that raised concerns of backsliding on market-opening commitments.

Philippine President Gloria Arroyo also said last month, "I am adopting the policy to slow the (tariff) liberalization program phase only to the minimum and to take full advantage of all accepted loopholes allowed."

Under AFTA rules countries may seek to temporarily opt out of their commitments in sectors which they feel are not prepared to face foreign competition. -- AFP