Talks with ASEAN partners make progress on internships, halal industry

‘POSITIVE outcomes’ from bilateral discussions with counterpart economic ministers in the Association of Southeast Asian Nations (ASEAN) and some of the economic bloc’s trading partners include progress on regional internship and the development of the halal industry.

Ramon M. Lopez, secretary of the Department of Trade and Industry (DTI), said ASEAN member states had discussions on a number of initiatives, resulting in “developments” on a regional internship program, among others.

“The idea is to have an internship program where interns can really be part of companies operating in ASEAN,” he said in a press conference on Monday for local media after the conclusion of the 49^th ASEAN Economic Ministers’ Meeting and Related Meetings at Marriott Hotel in Pasay City.

He said the program would give the interns a chance to also be hired by the companies in the region.

With Malaysia, he said the Philippines would pursue discussions on a palm plantation joint venture, wherein investors from the country’s neighbor could explore cooperation in farm operations locally and eventually produce processed palm oil.

He also cited Malaysia’s offer to help the country in enhancing its capability in producing halal products, or goods that are permissible for consumption under Islamic law.

He also said Kuala Lumpur-based AirAsia Bhd is keen on operating in the country’s “missionary or non-volume” areas.

He said the low-cost airline presented a feasibility study that calls for waiving the travel tax, which could result in a “multiplier effect” that will boost tourism revenues.

He said the foregone revenue for waiving the P1,600 travel tax could be recovered from revenues for the tourism sector, including the gifts and souvenirs industry, as well as duty-free sales of goods.

“If exempted, they will put a flight there. More people will be travelling because of the low fare [and] tax exemption,” he said, citing a study presented by AirAsia.

DTI Undersecretary Ceferino S. Rodolfo also highlighted what he called a “vote of confidence” from Malaysian investors.

Mr. Rodolfo said talks with Japan resulted in the free trade agreement (FTA) trading partner’s inputs in the country’s move for an “inclusive, innovation-led industrial strategy.” He said Japan has programs to support capacity-building for small and medium enterprises in important sectors such as electronics and autos.

Mr. Lopez said the country is moving forward with the 6^th joint committee meeting on the Philippines-Japan Economic Partnership Agreement (PJEPA), an FTA that covers trade in goods, trade in services, investments, among others.

“Our products of interest as we review the PJEPA are bananas, mangoes and pineapples,” he said, adding that the fruits are “very important for the southern Philippines.”

He said the Philippines is batting for greater market access in Japan in view of that country’s recent FTAs with other countries that also produce the products.

Mr. Lopez said the Philippines also pushed for the same products to be included among those with greater market access to Australia.

“We just have to go through this process and they can consider it,” he said, referring to Australia’s import risk assessment.

He said Australia asked about developments in the country’s review of its foreign investment negative list, which bars foreign entry in a number of sectors.

“But the confidence is there. They really want to come in,” he said.

Mr. Lopez said talks with the US centered on the inclusion of footwear in the Generalized System of Preferences, a trade preference program that provides opportunities for the world’s poorest countries to use trade in growing their economies.

“On a positive note, the US is supportive of proposals of the Philippines just like what happened in travel goods,” he said.

Mr. Lopez said during his meetings with counterparts in the US, they had been putting “more weight” on helping the Philippines, which has long been “a good ally and a long-standing trading partner.” He said there is sentiment within the US to highlight the two countries’ old alliance.

Mr. Lopez hosted this year’s economic ministers’ meeting in Manila among ASEAN member states Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. The talks also included countries with which ASEAN has existing FTAs, namely: Australia, China, India, Japan, South Korea and New Zealand. — Victor V. Saulon