The Philippines has called on WTO to prioritize the special safeguard mechanism (SSM) for agriculture, elimination of trade distorting subsidies and outcomes that will lead to greater participation in international trade for Micro Small and Medium Enterprises (MSMEs).
Trade and Industry Secretary Ramon M. Lopez leads the Philippine delegation to the ongoing Ministerial Conference 11 (MC11) in Buenos Aires from Dec. 10-13. Agriculture Secretary Emmanuel Piñol is the co-lead of the PH Delegation in Buenos Aires. MC11 gathers trade ministers, foreign ministers and high-level representatives from the WTO’s 164-member countries. A total of 4,000 delegates are expected to attend. A number of non-governmental civil society organizations (CSOs) and groups are also attending the event as observers. Meetings with Philippine-based CSOs have also been arranged in Buenos Aires.
According to Lopez, SSM is a Philippine priority in MC11 because this would allow developing countries to temporarily increase tariffs on agriculture products in cases of import surges or price declines.
“It prevents irreversible injury to very vulnerable farmers against price volatility. It also serves to balance large subsidies given to agricultural products in rich countries,” he said.
The Philippines support the agenda that agriculture sector must have SSM, and fairness and leveling of the playing field such as rules on domestic support and export restrictions.
On subsidies, Lopez said this has been Philippines’ continuing position for a substantial reduction and/or elimination of trade-distorting domestic support by developed countries and developing countries which retain domestic support entitlements as well as the elimination of all forms of export subsidies.
On MSMEs, Lopez said “the need to ensure that even among MSMEs, competition needs to be fair among them and this can be facilitated by discussing the need to align the comparable definition of MSME enterprise size, so that we level the playing field as we discuss various interventions for MSME.”
Now, he said, even among similarly-sized MSMEs — support system and resources vary from country to country. And, hence, due consideration to the development level of countries should be considered.
Thus, he said the Philippines is pushing for a discussion on a comparable definition of MSMEs. But even among similarly-sized MSMEs — support system and resources vary from country to country. And, hence, the development level of countries should be considered.
However, the challenge of including MSMEs in trade is not only important — but it is also urgent.
“If we are to make Globalization truly Inclusive, as emphasized by PRRD, we have to ensure that MSMEs are empowered and upgraded to be enable them to participate in the global value chain! Moreover, bigger economies are enjoined to provide better market access for MSMEs to maximize the potential gains from globalization,” he said.
Lopez also conveyed to the WTO ministers President Duterte’s message that globalization must ensure that there will only winners, but that no one will be left behind.
The Philippines, together with the Friends of MSMEs, is seeking appropriate arrangements within the existing framework of the WTO and relevant committees such as the establishment of a Working Group under the General Council that will be mandated to consider how the multilateral trading system can impact and benefit MSMEs, with particular consideration to the needs and interests of developing and least-developed countries.
In addition, at the MC 11, the Philippines will argue for the Doha Development Agenda (DDA) to remain as the overall framework for WTO negotiations. The Ministerial Declaration in Doha (2001) recognized that “trade can play a major role in the promotion of economic development and the alleviation of poverty.”
In particular, the DDA highlights the need to provide a discipline on the subsidies being given by developed countries to their agriculture; and provide more effective temporary protection from price volatilities to poor, vulnerable farmers.
In summary, the Philippines’ priorities for MC11 are eliminate trade-distorting domestic support and export subsidies; SSM for agriculture; and a Ministerial decision on an MSME work program that considers development levels. In addressing these, we will continue to uphold the DDA.
“It is time for WTO to deliver on its promise. It should implement a globalization framework that is truly developmental and where no one is left behind,” he said.
Lopez also acknowledged that the Philippines has benefited from globalization, in particular from the WTO. We have been growing at the fastest rate for the past five years and globally-linked, modern sectors such as BPOs and IT-enabled services, semiconductors and electronics, parts manufacturing for GVCs in auto & aerospace, and shipbuilding (among others) have been major contributors.
But he stressed that the Duterte government’s goal in globalization is not only for the Philippines to grow, but for EACH and EVERY Filipino to participate in (and not just benefit from) economic development.
“We cannot rely on growth to trickle down; the marginalized should be active participants in economic activities at the outset. Poverty in the Philippines has a sectoral and geographic dimension. One-third (1/3) of rural Filipinos are poor, compared with one-tenth (1/10th) among those living in urban areas. In addition, while more than 99%of our enterprises belong to the Micro and Small categories; they account for only about 35% of total production,” he said.
The Philippines as host of this year’s ASEAN has elevated its domestic focus on Inclusive Growth and Inclusive Business to Inclusive Regional Cooperation. At the ASEAN, our Chairmanship pushed for Inclusive Regional Integration. The Philippines will do the same at the WTO MC 11.
Source: Manilabulletin
Key words: PH, bat, agri, trade subsidy, removal, MSMEs, WTO, ministerial meet
