The Philippines is one of the founding members of the Association of Southeast Asian Nations (ASEAN), which is a regional intergovernmental organization comprising of 10 member countries in Southeast Asia. One of the primary objectives of ASEAN is to promote economic integration among member nations through free trade agreements and other initiatives. The ASEAN Trade in Goods Agreement (ATIGA) is one such agreement that governs trade in goods among ASEAN member countries. In this article, we will discuss how the Philippines utilizes the ASEAN Trade Agreement and cite specific examples.
The ASEAN Trade in Goods Agreement (ATIGA) was implemented in 2010 and aims to reduce or eliminate import tariffs and other barriers to trade between ASEAN member countries. Under this agreement, ASEAN member countries are required to reduce import tariffs on goods traded within the region. The Philippines, as a member of ASEAN, has benefited from this agreement by gaining access to markets in the other member countries without having to pay high import duties.
One example of how the Philippines utilizes the ASEAN Trade Agreement is in the automotive industry. The Philippines has a strong domestic automotive industry, but the market is small compared to other ASEAN member countries like Thailand and Indonesia. However, under the ATIGA agreement, the Philippines can export their locally produced vehicles to other ASEAN member countries without having to pay high import tariffs. This has resulted in increased exports of Philippine-made vehicles to other ASEAN countries and has helped the local automotive industry to grow.
Another example of how the Philippines utilizes the ASEAN Trade Agreement is in the agricultural sector. The Philippines is a major producer of rice and other agricultural products, but it has faced stiff competition from other ASEAN member countries. However, under the ATIGA agreement, the Philippines can export its agricultural products to other member countries without having to pay high import tariffs. This has helped the local agricultural industry to become more competitive and has increased exports of agricultural products to other ASEAN countries.
In conclusion, the Philippines has utilized the ASEAN Trade Agreement to promote economic integration and improve trade relations with its neighboring countries. The agreement has helped the Philippines gain access to other ASEAN member countries` markets without having to pay high import duties. This has resulted in increased exports of locally produced goods and has helped to stimulate economic growth. As a member of ASEAN, the Philippines will continue to benefit from the trade agreements and initiatives of the organization, contributing to the development of a sustainable and prosperous ASEAN community.
