THE Philippines has signed the second protocol to the Asean-Australia-New Zealand Free Trade Agreement (AANZFTA), which is expected to provide better opportunities for micro, small and medium enterprises (MSMEs) in the Philippines, President Ferdinand Marcos Jr. said on Wednesday.
At the Leaders' Plenary Session of the Asean-Australia Special Summit in Melbourne, President Marcos said the agreement will improve the access of MSMEs to markets and participation in global value chains, as well as promote the use of e-commerce. Asean is the Association of Southeast Asian Nations.
"We are pleased to inform you, excellencies, that the Philippines has just recently signed the second protocol to the Asean-Australia-New Zealand Free Trade Agreement," he said.
The President said he is confident AANZFTA will continue to respond to the evolving multidimensional challenges in the business environment and complement region-to-region efforts to strengthen supply chain resilience, and the expansion of trade, investment, inclusiveness and sustainable development.
"The Protocol will indeed benefit micro, small, and medium enterprises in as much as it facilitates their participation in international trade by improving their access to markets and participation in the global value chains, as well as promoting the use of e-commerce," Marcos said.
"With the momentum from the CEO Forum yesterday (Tuesday), and AANZFTA together with the Regional Comprehensive Economic Partnership (RCEP) Agreement, we are confident that we will usher in even more robust economic cooperation within our region and provide a legal framework for a more prosperous future," he added.
The AANZFTA is a market of around 711 million people with a combined gross domestic product of $5.9 trillion, based on data from the International Monetary Fund and the World Economic Outlook as of April 2023.
Australia and New Zealand, taken together, are Asean's eighth-largest trading partners.
The Department of Trade and Industry (DTI) said that Australia and New Zealand ranked 16th and 28th, respectively, when it comes to trade in 2021, with a combined total value of P2.64 billion.
The DTI added that Australia was the country's top 14th origin of investment inflows in 2021, amounting to P664.32 million.
"The AANZFTA entered into force for the Philippines in 2010; it is the first region-to-region trade agreement for Asean, Australia, and New Zealand and remains as Asean's most ambitious single undertaking since it embarked on an outward-looking economic regime to integrate Asean into the global economy," it added.
Marcos also welcomed Australia's Southeast Asia Economic Strategy to 2040, an elaborate plan aiming to broaden and deepen the economic ties between Asean and Australia.
"The economic cooperation infrastructures and web of free trade agreements that Asean and Australia have established over the years provide a solid foundation for this Strategy to flourish and to create a shared future that is peaceful and is prosperous," Marcos said.
"The Philippines especially looks forward to expanding our collaboration on agriculture on food security, digital economy, infrastructure, tourism, and health care. Sectors that are key to achieving a strongly rooted, comfortable, and secure future for Filipinos and Asean citizens," he added.
Before concluding his speech, Marcos highlighted the important role of "emerging leaders in shaping the world" as he commended Australia for creating a forum for engagement intended for leaders in government, business and civil society.
"We hope this engagement will trigger a conversation on the issues facing our region and how they may be addressed through cooperation and partnership. Our emerging leaders are indeed the bedrock of the sustainability of our continued economic, social, and political progress," Marcos said.