Business Bayani PH

Good news for Filipino businesses and professionals! The Philippines recently upgraded two key free trade agreements (FTAs), opening doors to wider markets and simplifying regulations. 

The ASEAN-Australia-New Zealand FTA (AANZFTA) and the ASEAN-Hong Kong, China FTA (AHKFTA) have received significant updates, bringing exciting changes for various sectors.

Boosting MSMEs and services

Micro, small, and medium enterprises (MSMEs) stand to gain the most from these revamped FTAs. The AANZFTA now includes a dedicated chapter on micro, small, and medium enterprises, promoting their participation in regional trade through capacity building and technical assistance. 

The updated agreements also offer improved market access for Filipino service providers in sectors like education, tourism, and professional services. This means easier access for Filipino professionals to practice in Australia, New Zealand, and Hong Kong.

Smoother exports and lower costs

Businesses exporting goods can rejoice as both agreements simplify rules of origin, making it easier to claim lower tariffs. The AHKFTA, for example, relaxed rules for products like food preparations, textiles, and jewelry, reducing administrative burdens and potentially lowering export costs.

Digital trade and e-commerce

Recognizing the growing importance of the digital economy, both agreements now have dedicated chapters on electronic commerce. This paves the way for smoother cross-border e-commerce transactions, benefiting both businesses and consumers.

Professional recognition and education

Filipino professionals seeking opportunities in Australia and New Zealand have something to celebrate. The AANZFTA now features annexes on professional services and education services cooperation. These pave the way for potential agreements on the mutual recognition of professional qualifications, making it easier for Filipino professionals to work in these countries. 

Additionally, the agreements promote collaboration in education, facilitating digital and blended learning opportunities for Filipinos.

Government support and outreach

The Department of Trade and Industry (DTI) is committed to helping businesses leverage these enhanced FTAs. They offer various outreach programs and assistance initiatives to inform stakeholders about the agreements’ benefits and guide them through the process of utilizing them.

“The finalization of the Second Protocol to Amend the AANZFTA represents another milestone in our work to further strengthen regional trade and investment flows between ASEAN, Australia, and New Zealand. We want to ensure the agreement continues to benefit businesses and reinforce our strategic links in the region,” said Trade Secretary Alfredo Pascual.

“The DTI committed to spreading awareness and maximizing the benefits of AANZFTA for Philippine businesses, including MSMEs. Our goal is to foster resilience and sustainability for the long term, facilitating the flow of goods and services, and attracting investments. I am confident this agreement will contribute to a stable and predictable trade and investment regime as well as greater movement of skilled professionals in the region,” he added.

Pascual also welcomes the signing of the AHKFTA First Protocol to enhance trade between ASEAN and Hong Kong. The DTI Secretary recognizes the challenges that come with the developments in the global economy and emphasizes the importance of optimizing the economic partnership between ASEAN and Hong Kong based on a rule-based system. 

The DTI encourages implementing cooperation initiatives through the economic and technical cooperation components of the AHKFTA, which include enhancing logistics systems and trade facilitation procedures, promoting the utilization of digital technology, broadening the global market reach of MSMEs, and strengthening business networks to facilitate more investments using the AHKFTA.

These revamped FTAs are expected to boost Philippine exports, attract investments, and create new job opportunities. They also hold the potential to enhance the skills and competitiveness of Filipino businesses and professionals in the region. ◼