Phl seen to benefit from FTA between Asean, HK

By Louella D. Desiderio (The Philippine Star)

The Association of South East Asian Nation pursuing free trade agreement with Hong-Kong. (photo taken from bilaterals.org)

MANILA, Philippines - The Philippines expects to benefit from a possible free trade agreement between the Association of Southeast Asian Nations (ASEAN) and Hong Kong,  a trade official said.

“It (ASEAN-Hong Kong) will benefit us because a significant part of Philippine-China trade goes through Hong Kong,” Trade Secretary Gregory Domingo told reporters.

To the extent the free trade agreement would allow easier flow of goods, he said the deal is seen to be positive for the Philippines.

The ASEAN economic leaders announced last year that it would pursue a free trade agreement with Hong Kong.

This, after Hong Kong expressed interest to accede to the ASEAN-China deal.

Domingo said studies are being conducted for the possible free trade agreement.

Data from Hong Kong’s Trade and Industry department website showed ASEAN countries such as Malaysia, Vietnam and Singapore are among the top destinations of the territory’s exports in 2012.

Malaysia and Singapore are also among the biggest sources of HongKong’s imports in the same year.

Aside from China, the ASEAN has free trade agreements with Korea, India, Japan, Australia and New Zealand.

The 10-member ASEAN aims to consolidate all its free trade agreements into one regional free trade network, the Regional Comprehensive Economic Partnership (RCEP).

The RCEP is targeted to be completed by 2015.The ASEAN is also set to establish by December 2015 the ASEAN Economic Community (AEC).The AEC would transform Southeast Asia into a region with free flow of goods, services, investments, skilled labor as well as capital.