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Press release: Growth prospects are linked to continued trade
liberalization reforms
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The third Trade Policy Review of the Philippines has been informative
and open, thus contributing to a better understanding of recent
developments in the Philippines' trade and related policies and the
domestic circumstances in which these policies are formulated and
implemented. The preparation of the Country Report has provided an
opportunity for domestic discussion and reflection and, together with
the excellent Secretariat Report, has contributed to transparency and
enabled Members to assess the trade policies and practices of the
Philippines. Our discussion has greatly benefited from the active
engagement of the Philippines' delegation as well as from our
discussant's insightful comments and many thoughtful interventions by
Members.
Members were encouraged by the recovery of the Philippines' economy
after the Asian financial crisis. Members welcomed the Government's
reform efforts, particularly concerning trade liberalization, fiscal
consolidation and privatization. Members encouraged the Philippines to
continue its reform process and improve access to its markets.
Members welcomed the Philippines' commitment to the multilateral
trading system, including its strong support for the Doha Development
Agenda. In this context, Members welcomed the Philippines' recent
tabling of its initial services offer.
Members expressed their appreciation of steps taken by the Philippines
to liberalize further its trade regime. While noting that its average
applied tariff rate is relatively low among developing countries,
Members were concerned about the predictability of applied tariffs,
referring in particular to the increase in the average applied tariff
rate in 2004. With a view to increasing predictability, Members urged
the Philippines to narrow the gap between applied and bound MFN tariff
rates and to bind more tariff lines. Members also encouraged the
Philippines to simplify its non-tariff measures. While welcoming the
Philippines' efforts to increase the transparency of its government
procurement regime, Members were concerned about the existence of a
strong preference for domestic goods and services. Some Members
encouraged the Philippines to participate in the Government
Procurement Agreement. Steps to strengthen intellectual property rules
were welcomed; Members encouraged the Philippines to strengthen
enforcement of such rules. Members commended the Philippines' ongoing
efforts to align its national standards with international ones, and
encouraged its continued efforts in this regard. In addition, while
expressing their appreciation of recent steps by the Philippines to
reduce barriers to inward foreign direct investment (FDI), Members
were interested in the Government's plans to liberalize further the
FDI regime. Members sought clarification on a range of issues
including customs procedures, subsidies, safeguard measures, and trade
and environment.
On sectoral issues, Members noted the growing importance of the
manufacturing and services sector in the Philippines' economy. Members
expressed their appreciation of reforms in the services sector, in
particular, in financial services and transport. Many Members urged
the Philippines to ratify the Fourth and Fifth protocols of the GATS.
Some Members noted the growing importance of overseas remittances in
the Philippines economy, and in this context, of Mode 4
liberalization.
Members expressed their appreciation of the oral and written responses
to their questions provided by the Philippines delegation, and looked
forward to receiving outstanding answers to questions. |
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