ASEAN-Asia Pacific link to boost trade: NEDA

September 12, 2017

The National Economic and Development Authority (NEDA) on Tuesday expects agreements by the Association of Southeast Asian Nation (ASEAN) and the Philippines’ integration to the larger Asia-Pacific region will boost the country’s trade.

In the report of NEDA-attached agency Philippine Statistics Authority, total trade recorded a 2.3 percent growth in July 2017, higher than the previous month’s 1.5 percent growth.

Merchandise trade grew to $12.2 billion, with a 10.4-percent exports growth offsetting the 3.2 percent decline in imports. Total trade from January to July grew to $87.8 billion or 10.3 percent, compared with the same period last year.

“Our country’s trade performance is consistent with the Asian trade growth. We are optimistic that higher growth will be achieved for the remaining months of the year,” Socioeconomic Planning Secretary Ernesto Pernia said.

For July, growth rates in exports were observed in Hong Kong (26.2 percent), Thailand (24.2 percent), South Korea (31.8 percent), Malaysia (31.6 percent), and Vietnam (16.4 percent).

For the same period, imports coming from the ASEAN region grew 8.5 percent, led by Indonesia (44.3 percent and Vietnam (50.8 percent).

NEDA notes ASEAN member states agreed during the recent ASEAN Economic Community meetings to prioritize trade in goods and trade facilitation, among others.

“For the region, this means a chance to double intra-ASEAN trade by 2025. For the Philippines, this means strengthened economic ties with our neighbors and a chance to deepen our partnerships,” Pernia said.

He said the proposed Regional Comprehensive Economic Partnership (RCEP) agreement will provide opportunities for all economies involved.

RCEP includes the ten ASEAN member states and six free trade agreement partners that include China, Korea, Japan, Australia, New Zealand, and India.

“This partnership may facilitate more exchange of goods and services, attract investments, create more jobs, and improve the standard of living,” said Pernia.

ASEAN accounts for 21.7 percent of the Philippines’ total trade, while the share of RCEP economies to Philippine trade is 60.5 percent. DMS