BusinessWorld | August 21, 2001 | May Czarina A. Baetiong
The Philippines is preparing for bilateral negotiations with member countries of the World Trade Organization (WTO) for another two-year extension of non-tariff trade barriers under the Trade Related Investment Measures (TRIMs).
This, after WTO's Council of Trade in Goods (CTG) has already ruled to hear petitions of WTO member countries that have notified and requested the council for the extension of TRIMs.
"The additional two years' TRIMs extension will have to be negotiated bilaterally with WTO. The Philippines has asked for an extension, along with eight or nine other countries," said Board of Investments executive director for industries Elmer Hernandez in an interview with reporters. The other countries requesting for an extension are Argentina, Chile, Colombia, Malaysia, Mexico, Pakistan, Romania and Thailand. Egypt, which only filed for a delay in the removal of TRIMs after December 1999, was also included in the CTG decision.
The country was supposed to junk its TRIMs in keeping with its WTO commitments to remove non-tariff barriers five years after it became a WTO signatory in 1995.
The country should have removed the TRIMS in Dec. 31, 1999, but was granted a two-year extension, which is set to expire end-December this year.
Mr. Hernandez added the United States has been persistent in pushing for the removal of TRIMs, apparently for its automotive sector.
He added the Philippines needs to immediately negotiate with the other WTO member countries to get their support for an extension.
"The US was, in fact, earlier not in favor of including the Philippines in the countries that asked for extension but the WTO council issued a decision for our inclusion," the official said.
The car sector's local content requirement is one example of non-trade barriers, which falls under TRIMs. The rule mandates local automotive assemblers to source their parts and supplies requirements from the domestic market.
Its removal was feared to put hundreds of auto parts manufacturers out of job, considering most of the companies were hit during the 1997 Asian crisis.
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