PHILIPPINE TARIFF POLICY, INTERNATIONAL TRADE ORGANIZATIONS AND AGREEMENTS

FTA Agreement

It is a negotiated arrangement to reduce trade barriers and increase trade of goods and services between participating countries.

Economic Partnership Agreement

It is an economic arrangement between Parties to eliminate barriers to the free movement of goods, services and investments

Multilateral Trade Agreements (MTA)

It is a trade agreements between many nations at one time. The main benefit of this agreement is that all nations get treated equally, and so it levels the playing field, especially for poorer nations that are less competitive by nature. Example: GATT-WTO

Regional Trade Agreement (RTA)

It is an agreement involving many participants but is limited only to participants in a specific geographical area or region. Example: ATIGA

Bilateral Trade Agreement (BTA)

It is an agreement between two sides: each side could be a country, a trade bloc or an informal group countries. Examples: PJEPA, ACFTA

1. Trade in Goods

2. Trade in Services

3. Investments

• Other areas of cooperation

The major components of an FTA and EP Agreement

Trade liberalization that includes:

• Free flow of trade

• Settle trade disputes

• Trade Negotiations

The purposes of trade agreements

Trade in Goods Agreement

It is the primary agreement concerning the reduction of regional tariffs and contains:

• a set of criteria to determine the country of origin of goods; and

• guidelines to determine if specific goods are eligible to benefit from preferential tariff treatment

• ASEAN (ATIGA)

• AANZFTA

• ACFTA

• AHKFTA

• AIFTA

• AJCEP

• AKFTA

• PJEPA

• PH-EFTA

• RCEP

• PH-KR

• PH-UAE CEPA

Philippines-Participated FTA and EP Agreements

August 08, 1967 Bangkok, Thailand

When and where does the ASEAN established

ASEAN Declaration (Bangkok Declaration)

Founding documents of ASEAN signed by the founding fathers of ASEAN.

• Indonesia

• Malaysia

• Philippines

• Singapore

• Thailand

Founding Fathers of ASEAN

East-Timor or Timor-Leste

Latest member of ASEAN

11 Member States

How many member states are there in ASEAN?

RCEP Agreement

ASEAN helped in the negotiations and finalization of this Agreement, creating one of the world’s largest free trade blocs

H.E. DR. KAO KIM HOURN

Who is the ASEAN Secretary-General

• Based on alphabetical order (country’s English name) for a period of 5 years

• Appointed by the ASEAN Summit

How does the appointment of ASEAN Secretary-General works?

Jakarta, Indonesia

The Seat of ASEAN

ASEAN Summit

This is called the ASEAN meetings

Twice in a year

How many times will the ASEAN Summits be held?

Navigating Our Future, Together

The theme of the ASEAN 2026 Philippines Chairmanship

World’s 5th largest economy and poised to become 4th largest economy by 2030

What is ASEAN’s ranking in the world’s economy and its aim?

• Peace and Security Anchors

• Prosperity Corridors

• People Empowerment

The Philippine’s Chairship three strategic priorities

Association of Southeast Asian Nations

ASEAN means

• ASEAN Political-Security Community

• ASEAN Economic Community

• ASEAN Socio-Cultural Community

The ASEAN Community Three Pillars

ASEAN Political-Security Community

One of ASEAN’s pillars is to establish a rules-based community promoting political development and stability in the region.

ASEAN Economic Community

One of ASEAN’s pillars is to establish ASEAN as a single market and production base.

ASEAN Charter

It serves as a foundation in achieving the ASEAN Economic Community by providing legal status and an institutional framework of ASEAN

ASEAN Socio-Cultural Community

One of ASEAN’s pillars is to represent the human dimension of ASEAN cooperation addressing the region’s aspiration to lift the quality of life of its people

The ASEAN Economic Community Blueprint 2025

This will transform ASEAN into a single market and production base full integrated into the global economy

ASEAN 2045: Our Shared Future

The ASEAN Community Vision 2045 title

ASEAN 2045: Our Shared Future

It is a 20-year strategic roadmap that builds on the achievements of the previous ASEAN Community Vision 2025

• Politically Cohesive

• Economically Integrated

• Socially Responsible

• Rules-Based and People-Oriented

Four primary pillars of development of the ASEAN community vision 2045

ASEAN Trade Facilitation

It is a recognized driver of economic development and regional integration playing a key role with respect to the realization of the goal of establishing ASEAN as a single market and production base

The ASEAN Trade Facilitation Framework (ATFF)

It was adopted in 2016 with an even broader scope than the WTO Trade Facilitation Agreement

The Common Effective Preferential Tariff (CEPT) Scheme

It is the main mechanism for the realization of AFTA

CEPT

It is an agreed preferential tariff applied to goods originating from and traded between ASEAN Member States

Unprocessed agricultural products

The CEPT Scheme covers all products except…

ASEAN Free Trade Area (AFTA)

ASEAN Heads of Government formally agreed to establish this one during the 4th ASEAN Summit in Singapore in 1992

e-ASEAN Framework Agremeent

Signed during the Fourth ASEAN Informal Summit, 22-25 November 2000, Singapore;

The objectives of this Agreement are to:

• Enhance the competitiveness of the Information and Communications Technology (ICT) sector in ASEAN;

• Promote cooperation between the public and private sectors

• Promote and liberalize trade in ICT products, services and investments

ASEAN 6 - Indonesia(ID), Malaysia(MY), Philippines(PH), Singapore(SG), Thailand(TH), Brunei Darussalam(BN)

These are the signatories of ASEAN Free Trade Area

ASEAN Integration System of Preferences (AISP) Scheme for CLMV

This is where the original ASEAN Member States apply this scheme on certain goods of these new members.

ASEAN Integration System of Preferences (AISP) Scheme for CLMV Countries

Under this scheme, preferential tariffs (exempted or reduced to a rate lower than that of the normal ATIGA rate) are offered to the newer members by the older members on voluntary and bilateral basis starting on 01 January 2002

ASEAN Framework Agreement for the Integration of Priority Sectors

The objective of this is to enable the progressive, expeditious and systematic integration of the priority sectors in ASEAN

• Agro-based products

• Air travel

• Automotives

• e-ASIAN

• Electronics

• Fisheries

• Healthcare

• Rubber-based products

• Textiles and apparel

• Tourism

• Wood-based products

• Logistics

What are the PRIORITY SECTORS under ASEAN Framework Agreement

ATIGA (ASEAN Trade in Goods Agreement)

It is the enhancement and consolidation of all existing provisions of the CEPT-AFTA Scheme and relevant economic agreements and instruments

signed February 26, 2009 at Cha-am Thailand, and entered into force on May 17, 2010

When and where does ATIGA signed and take into force

ATIGA

It provided the product schedule for tariff reduction/elimination of each Member State

1. Tariff liberalization

2. Removal of Non-tariff barriers

3. ROO (OCP & PSR)

4. Trade Facilitation

ATIGA ensures the free flow of goods within ASEAN thru:

ASEAN Harmonized Tariff Nomenclature (AHTN)

It is an 8-digit commodity nomenclature based on the HS of the WCO

AHTN

It was created to further facilitate trade by establishing uniformity of application in the classification of goods in ASEAN

Protocol Governing the Implementation of the ASEAN Harmonized Tariff Nomenclature

This protocol aims to establish clear rules to govern the implementation of AHTN, its explanatory notes and their amendments

ASEAN and China, Japan, and South Korea

ASEAN +3

ASEAN +3

Established in 1997, it is a development of East Asian regional cooperation which serves as a forum that functions as a coordinator of cooperation between ASEAN and China, Japan, and South Korea

Treaty of Amity and Cooperation

TAC means

ASEAN Outlook on the Indo-Pacific

AOIP means

BIMP-EAGA (Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area

It is a subregional economic cooperation initiative launched in 1994 to accelerate development in remote and less-developed areas. It aims to boost trade, investments, and tourism through cross-border infrastructure, improved shipping routes, and power interconnections

1.6 million square kilometers and 60% of the total land area

This is the growth area of a combined landmass of the four participating countries of BIMP-EAGA

• The entire Sultanate of Brunei Darussalam

• Indonesia: Kalimantan, Sulawesi, Maluku, and Papua

• Malaysia: Sabah, Sarawak, and Labuan

• Philippines: Mindanao, Palawan

Participating regions of BIMP-EAGA

Asian Development Bank

This serves as the regional development advisor, providing strategic and technical assistance

• Connectivity

• Agribusiness

• Tourism

• Environment

• Sociocultural and Education

Five Strategic Pillars of BIMP-EAGA

• Climate-Smart Agro-Industry & Fisheries

• Sustainable Tourism

• Digitalization and The Blue Economy

BIMP-EAGA Vision 2035 key priorities

Regional Comprehensive Economic Partnership (RCEP)

It is a free trade agreement to broaden and deepen ASEAN’s engagement with Australia, China, Japan, Korea, and New Zealand, signed on November 15 2020

RCEP

It updates the coverage of the existing ASEAN+1 FTAs

within 1 year

When shall the RCEP Ministers first meet after the Agreement enters into force?

Every year, unless the Parties agree otherwise

How often shall the RCEP Ministers meet after their first meeting?

By consensus

How are decisions made by the RCEP Ministers?

Senior Officials

Who are tasked to oversee RCEP

India

What country decided to exit the RCEP negotiations on November 4, 2019, due to unresolved outstanding issues?

Asia-Pacific Economic Cooperation

What does APEC stand for?

1989

In what year was APEC established?

Informal ministerial-level dialogue group

APEC was established as an

12

How many members did APEC have when it was established in 1989?

21

How many full members does APEC have?

Canberra, Australia

Where was APEC established?

Singapore

Where is the headquarters of APEC located?

Consensus

How are decisions made within APEC?

Decisions within APEC are reached by consensus, members' commitments are voluntary, and APEC does not require treaty obligations from its participants

Unlike the WTO or other multilateral trade bodies, how are decisions made within APEC, what is the nature of its members' commitments, and does it require treaty obligations from its participants?

Individual Action Plans

This is APEC’s action plan to record actions taken by each of the member economies to meet their states goals for free and open trade and investment. APEC member set their own timelines and goals, and undertake these actions on a voluntary and non-binding basis

Collective Action Plans

This is APEC’s action plan to detail the collective actions of all APEC members in the issue areas outlined in the Individual Action Plans

Collective Action Plan

This is use by APEC to outline actions and objectives to meet the free trade and investment goals, as well as to monitor and report on progress

1. Trade and Investment Liberalization

2. Business Facilitation

3. Economic and Technical Cooperation

APEC’s three pillars

Trade and Investment Liberalization

One of the APEC’s pillars to reduce and eventually eliminate tariff and non-tariff barriers to trade and investment.

Business Facilitation

One of the APEC’s pillar that focuses on reducing the costs of business transactions, improving access to trade information and aligning policy and business strategies to facilitate growth, and free and open trade.

Economic and Technical Cooperation

One of the APEC’s pillar to provide training and cooperation to build capacities in all APEC Member Economies to take advantage of global trade.

Asia-Pacific Economic Cooperation (APEC)

It operates as a cooperative, multilateral economic and trade forum committed to reducing barriers to trade and investment without requiring its members to enter into legally binding obligations

Member Economies

The member of APEC is called..

The heads of government of the APEC member economies, except Taiwan, which is represented by a ministerial-level official.

Who attends the annual APEC Economic Leaders' Meeting (AELM)?

Taiwan

Which APEC member economy is represented by a ministerial-level official instead of its head of government at the AELM?

The APEC Economic Leaders' Meeting (AELM).

Which APEC meeting is attended by the heads of government and sets the organization's policy agenda?

Shenzhen, China on November 18-19, 2026

Where will the 2026 APEC Economic Leaders’ Meeting and its accompanying summit take place?

• Openness

• Innovation

• Cooperation

The Agenda for the “China Year” focuses on three main pillars for regional collaboration

General Agreement on Tariffs and Trade (GATT)

It was set up in 1947 as a Negotiating Forum on the reduction of trade barriers

General Agreement on Tariffs and Trade (GATT)

It is a multilateral Treaty which provides rules for international trade

General Agreement on Tariff and Trade (GATT)

It is an International court for the settlement of trade disputes

8 rounds

the GATT trade rounds is consist of how many?

The Marrakesh Agreement.

What agreement officially established the World Trade Organization (WTO)?

World Trade Organization

It is created during the GATT Uruguay Round and entered into force on January 01, 1995

World Trade Organization

It is an institutional body overseeing the rules of International Trade and serves as a negotiating forum and trade dispute settlement body on Trade Problems between members