March 29, 2012
The TPPA is what US President Barack Obama describes as a “landmark, 21st Century Trade Agreement” that improves upon and rectifies past problems in US trade and investment treaties.[i] The TPPA is a free-trade agreement currently being negotiated by nine countries: the United States, Australia, New Zealand, Chile, Peru, Brunei, Vietnam, Malaysia, and Singapore. Japan is in preliminary talks and Canada and Mexico are looking to join and South Korea, the Philippines, and Taiwan are on the sidelines. The US is leading the negotiations and has a great deal of influence over the outcome of the agreement, which covers a vast range of subject matters, including tariffs on goods, trade in services, labor and environment, telecommunications, and intellectual property, but for Pacific Islands, the investor rights chapters may offer the greatest challenge to Pacific Island environmental resources.
Although the negotiations are being held in secret, leaked documents confirm what trade policy experts believe, that the TPPA is a “NAFTA on steroids.” Without having to adhere to normal democratic processes or contend with public scrutiny, it was recently leaked that these documents will be held in secrecy for four years after being signed or dismissed.[ii]
Currently, the Philippines are not eligible to join the TPPA.” Washington is willing to engage in joint initiatives with the Philippines “that create important building blocks toward potential membership, like our recent trade facilitation agreement,” to be able to join the Trans-Pacific Partnership Agreement.
“As your government continues to consider the prospect of pursuing potential membership in the TPP, we want to be helpful,” US Trade Representative Marantis said. “We have made that clear privately and publicly.” “We are willing to provide our views on the kinds of commitments and policy reforms that are likely to be required of the Philippines to join,” he added.[iii]
What are these policy reforms?
The government should be ready to implement drastic changes, possibly even including a Constitutional amendment if it is really serious in its desire to become a signatory to the Trans-Pacific Partnership (TPP) Agreement.
John Forbes, the senior advisor of the American Chamber of Commerce of the Philippines, said the country might not even be invited to join the TPP talks due to its very strict policies, particularly when it comes to the practice of certain professions of foreign nationals in the country.[iv]
The aim of the TPP is to bring all tariffs down to zero by 2015. The coverage of the deal spans trade in goods, trade in services, rules of origin, trade remedies, sanitary and phytosanitary measures, technical barriers, intellectual property, government procurement, and competition policy.
In an earlier interview, Trade Undersecretary Adrian Cristobal Jr. said the country’s accession to the TPP would pave the way for around $10 billion worth of exports for the Philippines.
On Nov. 14, 2011, at the APEC forum in Honolulu, the Philippines and the US signed a customs administration and trade facilitation agreement, a building block towards Philippine’s participation in the Trans-Pacific Partnership (TPP) agreement.[v]
The trade agreements that the US has with the Philippines are called Trade and Investment Framework Agreements (TIFA) signed in 1989, revised in 2006, and again in 2010.
[i] Gallagher, Kevin and Timothy Wise. “The false promise of Obama’s trade deals,” The Guardian. 09/08/2011 (http://www.guardian.co.uk/commentisfree/cifamerica/2011/sep/08/obama-trade-deals).
[ii] TPP Watch. (http://tppwatch.org/what-is-tppa/) Accessed Feb 16, 2012.
[iii] Wang, Yamei, ed. “Philippines not eligible to join Trans-Pacific Partnership” Xinhua.com. (http://news.xinhuanet.com/english/world/2012-02/28/c_131436463.htm) February 28, 2012
[iv] Ho, Abigail, L. “Drastic changes needed for Philippine entry to TPP” Business Inquirer. (http://business.inquirer.net/8607/drastic-changes-needed-for-philippine-entry-to-tpp) July 24, 2011.
[v] Chailes-Magkilat, Bernie . “Philippines, US sign Customs Agreement” Manila Bulletin Publishing Coporation (http://www.mb.com.ph/articles/341315/philippines-us-sign-customs-agreement). Nov. 14, 2011.