Philippine farm exports to increase under China-Asean FTA

The Philippines is expected to export more high-value farm and fishery products as a regional free trade agreement (FTA) comes into effect this year.

Agriculture Secretary Arthur Yap said the Philippines has advantages in the production of certain agricultural products and can benefit from regional FTAs to increase farm product exports.

A free trade agreement covering China and Asean went into effect on January 1, 2010. Under the agreement, duties of more than 7,000 trading items will be reduced to zero percent, except for "sensitive" agricultural products such as rice and sugar.

William Co, an advisor to the government's farm trade and former agricultural attach to China, said Manila is especially keen to promote the country's high-value farm products to China.

Agricultural export earnings of the Philippines reached PHP$3.89 billion (US$84.7 million) in 2008, but the figure is expected to slow in 2009 due to shrinking global demand and devastating natural disasters that reduced output.