December 8, 2024 | 12:00am
MANILA, Philippines — The Philippines and Chile started their negotiations for the Comprehensive Economic Partnership Agreement (CEPA) in a bid to strengthen economic ties between the two countries.
Trade Secretary Ma. Cristina Roque and Chile’s Minister of Foreign Affairs Alberto van Klaveren signed on Friday the joint statement officially launching the negotiation in Manila.
Roque said the CEPA with Chile would be the Philippines’ first free trade agreement in Latin America.
The Philippines-Chile CEPA aims to go beyond trade in goods and services. It will include key areas such as intellectual property rights, digital economy, environment, labor and trade and gender, among others.
“Beyond trade, the CEPA should also be driven by a commitment to sustainability, inclusivity, and economic resilience. By addressing new-generation trade issues, the agreement aligns with the Philippines’ goals of inclusivity and resilience,” Roque said.
Van Klaveren said the CEPA would bring benefits to both countries, which serve as vital economic gateways.
“The Philippines connects ASEAN (Association of Southeast Asian Nations) to the world, while Chile bridges Latin America to the Asia-Pacific. A CEPA could enhance our strategic roles of fostering greater regional integration between ASEAN and Latin America,” he said.
In terms of trade, van Klaveren said tariff reductions under the CEPA could diversify the Philippines’ exports basket and boost key industries like forestry, chemicals, textiles and agribusiness.
For Chile, he said the benefits include gaining greater access to the Filipino market for its products, as well as promoting competitiveness.
Van Klaveren said the CEPA could also address non-tariff barriers, reduce transaction costs and enhance global value chain integration.
Following the announcement of the launch of negotiations, Trade Undersecretary Allan Gepty said the parties aim to finalize the terms or the scoping paper that will identify areas for the negotiation by January next year.
“For the first round of negotiations, we’re targeting maybe third week or last week of March,” Gepty said, adding this will be held in Santiago, Chile.
Gepty said the aim is to complete the CEPA negotiations by 2026.
Bilateral trade between the Philippines and Chile amounted to $141.24 million last year.
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