BizCLIR

International trade is important to transformational development and economic growth. A liberalized trade regime is beneficial since it helps a country’s economy to grow and thus can help to reduce poverty if the growth is widespread. Moreover, it can make an economy more productive and competitive by allowing for specialization. The highly literate work force in the Philippines coupled with its strategic location within Asia provides it with a competitive advantage to benefit from trade.

The Philippines has a solid and extensive framework of laws and institutions that have developed since the country’s admission into the WTO. For an effective trade policy formulation that enables economic growth and business development, an effective coordination system between ministries, and that includes private-sector participation, is essential, in addition to the laws. The Philippines needs to further develop effective decision-making processes to produce rules and regulations that enable trade, comply with the standards of the WTO, and that effectuate growth. This would include addressing services, which is a key area with growth potential. While the goal of involving the private sector is espoused, this is often done too late or ad hoc. A system of notice to all interested stakeholders to allow their input is lacking at this point. Both government and the private sector noted that the Philippine Export Zone Authority, or PEZA, was an example of effective streamlining across the myriad of implementing and support institutions in the international trade arena.