1. National Trade Agenda

2. Philippine Economy

3. Philippine Industry

4. Employment in Industry (Source:NSCB)

5. Philippine Industry Manufacturing accounts for Php 1.1 T of Industry total output of Php 1.5 T Manufacturing sector includes food and beverage, clothing and textile, electronics, among others.

6. Philippine Agriculture

7. Philippine Services Sector

8. Biggest contributors to growth: communications and private services Private services include business (business processing officers), personal services, medical and health, and recreational services

9. Philippine Trade:Top Imports

10. Philippine Trade: Top Exports

11. Philippine Employment

12. Philippine Trade Policy Unilateral Policies (TRPs) Commitment under the GATT-WTO Bilateral and Regional Free Trade Agreement Agriculture - 11.85% Mining - 2.47% Manufacturing - 7.26%

13. Sectors Covered

14. Philippine Trade Policy Formulation Process Legislature has greater mandate under the Constitution Executive has de facto greater influence on trade policy

15. Common Trade Issues: Agriculture and Manufacturing  Tariffs not sufficient to cover difference in domestic price and import price (for almost all products);  Applied tariffs very low due to unilateral tariff reduction policy;  Low bound rates;  Smuggling (largely technical smuggling);  High subsidies applied on competitor products;  Setting of tariffs do not factor in concerns such as environmental and social costs, seasonality

16. Common Trade Issues: Agriculture and Manufacturing Commitments to liberalize trade in WTO, AFTA-CEPT, new and emerging bilateral and regional free trade agreements NTBs, SPS Limited enforcement of safeguards against excessive imports

17. Common Competitiveness Issues: Agri and Manufacturing High cost of inputs High cost of doing business (taxation, additional expenses due to strict regulations); Lack of government support in the production, processing, marketing, packaging of goods; Over capacity of manufacturing plants (need to consolidate and promote economies of scale)

18. Common Competitiveness Issues: Agriculture and Manufacturing Limited capability to supply international market in terms of supply and volume Lack of comprehensive strategic plan for many sectors

19. Other issues Assessment of impact of industries/sub- sectors on environment, welfare of communities, on health of workers, etc. Need to use government procurement to spur domestic demand for domestically produced goods

20. Issues in Services No consolidated information on what is being negotiated for services under the different agreements Disjointed approach to services negotiations (services handled by different government agencies, PRC, DOLE, DOH, DFA, NEDA, etc) Very limited stakeholder participation in services negotiations

21. Issues on trade policy formulation and negotiation 1.No coherent trade agenda for each sector that should define unilateral trade policy and positions in the bilateral and regional trade agreements; 2.Limited stakeholder participation in the policy formulation and negotiation process;no programmtic consultative mechanism 3.No mechanism to exact accountability and transparency

22. Quadrant Analysis Quadrant 1 : Big Market, Competitive Coconut Jewelry Handline fishing Shipping Quadrant 2: Big Market, Not competitive Corn Sugar Coffee Poultry Shoes Petrochemical industries

23. Quadrant Analysis Quadrant 3 : Limited Market, Competitive Quadrant 4: Limited Market, Not competitive Cement Aquaculture items (bangus, tilapia)

24. Common Recommendations on Trade 1.Increase tariff rates or arrest tariff reduction; 2.Moderate importation; 3.Maximize flexibilities in international trade agreements (eg use of SPs to protect key sectors); 4.Start looking at SPS and NTBs; 5.Preservation of policy space in international trade agreements.

25. Spectrum of Positions

26. Common Recommendations on Competitiveness Limit taxation and regulation on domestic business (either imposed by LGUs or the national government) Increased public investment to support production, processing, packaging or marketing of goods; Formulate and implement a comprehensive and strategic development plan for each sector Work on reducing the cost of inputs (government intervention to reduce cost of energy, money etc)

27. Common Recommendations on Mechanism for Trade Policy Formulation and Negotiations Transparency: informing stakeholders of what is being negotiated in the various trade agreements Established mechanism/institution to consult stakeholders on trade poliy formulation and negotiation

28. Vision of a National Trade Agenda Industries that are competitive in domestic and international markets Development of sectors translated to (1) improved income among the poor (2) conditions that are not detrimental to environment, economic and social welfare of marginalized communities

29. National Trade Agenda Tactical Trade and Competitiveness Agenda (next 2-3 years): 1.Immediate review of tariffs on selected commodities; 2.Inventory and review of all trade related legislation and administrative orders for (a) immediate implementation (2) revision or ammendment (3) fill in legislation gaps 3.Maximum preservation of policy space of sensitive sectors in international trade agreements (?)

30. National Trade Agenda Tactical Agenda(2-3 years) 4. Open up international trade agreements to participation by stakeholders and other non-state actors; 5. Validation of road maps for sector; 6. Begin process of building road maps for other sectors, especially services

31. National Trade Agenda (Strategic) Agenda (in the next 5 years) Tariff recalibration program; tariffs to consider of (1) level of competitiveness of sectors (2) strategic importance of sector to development, poverty alleviation (3) environmental and other social concern Passage of PTRO bill Implementation of industry road maps

32. National Trade Agenda Strategic Agenda Legislation that calibrates tariff reduction vis-à-vis delivery of competitiveness enhancement programs (parang farm bill meets citizens charter - bawal magbawas ng taripa hanggat di nag dedeliver ng services based on pre- identified benchmarks)

33. Areas requiring more work Services - basic information on services industry, consolidate information related to services negotiations across all trade agreements Industry - expand understanding of other sub- sectors TBT and SPS Existing domestic trade policies