The Association of Southeast Asian Nations (Asean) has launched its free trade agreement (FTA) negotiations with Canada, the Department of Trade and Industry (DTI) reported on Thursday.
In a news statement, the DTI said that the Asean-Canada FTA (ACANFTA) talks were introduced during the 10th Asean Economic Ministers-Canada Consultation held last Wednesday. It is expected to start by early 2022.
“There was a strong recognition among the countries that tackling the economic disruptions of the Covid-19 pandemic needs an enhanced international trade and regional cooperation,” the trade department said. “In this respect, the ministers announced the launch of the ACANFTA negotiations as a clear and concrete reaffirmation of the commitment to open markets, trade, and investment.”
DTI said that the launching of the FTA negotiation is a result of nearly five-year long assessment of the potential trade pact.
The joint feasibility study in 2018 showed that the Asean economy would benefit from an FTA with Canada, projecting an increase in GDP of $39.4 billion. This growth is supported by tariff liberalization, reduction of non-tariff barriers and enhancements in trade facilitation.
Meanwhile, the Philippines stands to gain a 2.63-percent GDP increase from the trade deal, which is equivalent to $7.4 billion.
“We are pleased to see that Asean and Canada share common values and shared priorities which shows that there is value in pursuing a trade agreement with Canada, and we support the launch of the Asean-Canada FTA negotiations,” Trade Secretary Ramon M. Lopez said.
The trade chief expressed his openness to engage Asean and Canada in non-traditional areas of trade, such as labor, environment, culture and other issues, including gender and indigenous people.
“On these diverging and new FTA areas, rest assured that the Philippines is willing to engage and find a mutually acceptable level of ambition especially since these areas are important in pursuing sustainable development and inclusive growth,” Lopez added.
The Asean ministers instructed the senior economic officials to develop a work plan to move forward with the FTA talks, including an official scoping paper exercise “that will further flesh out the diverging areas between some Asean member- states and Canada.”
Last year, the Philippines and Canada had a total trade of $925.7 million.