Philippines, Chile sign accord for joint economic cooperation

The Philippines and Chile have inked an accord to strengthen the economic cooperation between the countries.

Trade Undersecretary Ceferino Rodolfo and Chile’s Vice Minister for Trade Rodrigo Yáñez virtually signed a memorandum of understanding (MOU) for the establishment of a joint economic cooperation.

In a statement on Tuesday, the Department of Trade and Industry (DTI) said the signing of the MOU is a significant milestone for both economies as it represents the first trade and investment mechanism of the Philippines to formally engage the South American Region.

In his remarks, Rodolfo said, “The JEC will serve as a confidence building measure to further intensify the bilateral economic linkages while addressing the  challenges posed by geographic distance and generally low-level of awareness by businesses in each other’s markets.”

He also added that the JEC will be a “tool for engagement on enhancing current levels of trade and investments, discussing various cooperation initiatives in areas of mutual interest, and promoting better synergies with businesses.”

For his part, Yáñez said that international trade is key to economic recovery and emphasized “it is of the utmost importance for our countries to define practical steps to foster open trade, enhance global value chains and support innovation and technology.”

The Chilean trade official further conveyed the South American country’s commitment to “build on the historic and friendly relations and begin a new stage of active collaboration towards achieving a mutually beneficial relationship with the Philippines.”

Chilean Ambassador to the Philippines Claudio Rojas, Philippine Ambassador to Chile Teresita Daza, and representatives from the DTI and the Ministry of Foreign Affairs of Chile were also present in the virtual signing.

After the signing, a bilateral meeting between Rodolfo and Yañez took place wherein both Trade vice ministers vowed to work closely together and collaborate towards growth in trade and investment in light of the current pandemic.

Rodolfo also expressed the Philippines’ interest to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

To recall, Trade Secretary Ramon Lopez has formally written to New Zealand as the depositary of the agreement inquiring on the process of accession.

Yáñez conveyed Chile’s support for the Philippines’ accession to the CPTPP and shared that Chile is currently in the process of ratifying the agreement through its legislative body.

The Chilean trade official said that their technical team will be available to guide and assist the Philippines in the process.

Meanwhile, notwithstanding the invitation to join the Regional Comprehensive Economic Partnership (RCEP), Yáñez emphasized Chile’s interest to accede to the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) as its current priority.

Following the receipt of an official letter from Chile’s Foreign Minister Andrés Allamand, Rodolfo conveyed Lopez’s directive to support Chile’s accession to AANZFTA.

The Philippines and Chile agreed to convene the first Philippines-Chile JEC within the year to sustain the momentum of bilateral discussions.

In 2020, Chile was the Philippines’ 54th major trading partner out of 224 countries, 52nd export market out of 211, and 52nd import supplier out of 205, according to the DTI.

The total bilateral trade between the two countries was valued at $59.71 million in the same year.—AOL, GMA News