THE Department of Trade and Industry (DTI) said the Philippines signed the Fifth Protocol of the ASEAN Comprehensive Investment Agreement (CIA) last week, and reported significant progress on amendments to the ASEAN-China Free Trade Area (FTA).
At an online briefing on Monday, Trade Secretary Cristina A. Roque said the ASEAN CIA “makes it easier for investors to identify sectors open for investment in the Philippines, signaling our readiness to be a leader in global economic and strategic manufacturing,” Ms. Roque said.
According to Undersecretary Allan B. Gepty, the protocol enables a more stable and predictable business environment that will help attract more investment.
“The submission of the Schedule of Reservations pursuant to the Fifth Protocol would provide greater certainty and transparency in determining which sectors are open for investments because those sectors with market access restrictions or limitations will be accordingly listed,” he said.
“This is aligned with the country’s policy to pursue an advanced, purposive, and forward-looking agreement,” he added.
ASEAN members commenced the signing process of the Fifth Protocol on Sept. 16 at Vientiane.
“It provides for the operationalization of the transition of the current single-annex ACIA reservation list to a two-annex negative list,” according to a post on ASEAN’s website.
These include the reservations against the obligation on Prohibition of Performance Requirements mandated under the Fourth Protocol, the expansion of the scope of the ACIA, and the application of the ratchet mechanism to some member states, it added.
Meanwhile, Mr. Gepty said that the ASEAN-China FTA 3.0 was also substantially concluded last week.
“It will be the third time that it is going to be upgraded,” he said.
In a joint statement, the ASEAN members said that the updated ASEAN-China FTA will “open up new opportunities as it remains responsive towards emerging challenges and takes into account modern trade practices.”
Aside from deepening commitments in existing areas, the upgraded agreement also seeks to introduce commitments in new areas such as digital economy, green economy, supply chain connectivity, competition and consumer protection, and micro, small and medium enterprises.
“These enhancements will foster an inclusive and sustainable regional economy, improve supply chain connectivity and resilience, and support the ASEAN and China digital transformation,” according to the joint statement. — Justine Irish D. Tabile
