Mindanawons urged to take advantage of EFTA-PH free trade agreement
DAVAO CITY (MindaNews / 29 Apr) — Norwegian Ambassador to the Philippines Christian Halaas Lyster urged exporters from Mindanao to seize the opportunities offered by the existing free trade agreement between the Philippines and European Free Trade Association (EFTA) member countries.
In an interview during the “EFTA-Mindanao Dialogue: Maximizing Opportunities in the Regional Growth Corridor of Southern Mindanao” held at Seda Abreeza on Tuesday, Lyster noted that trade between EFTA countries and the Philippines has been growing, but emphasized that there remains significant potential for even more exports from Mindanao.
“I think that one important thing is basically to know more about the free trade agreement to share information that it exists, and that’s why we are here tonight to share that information and the opportunities that it can create for exporters and importers here in Davao and Mindanao,” he said.
The EFTA is an intergovernmental organization composed of Norway, Switzerland, Iceland, and Liechtenstein, established to promote free trade and economic integration among its members.
The EFTA-Philippines FTA, signed on April 28, 2016, and entered into force on June 1, 2019, has eliminated 99.9% of duties on industrial goods and 89 to 99% of tariffs, according to Lyster.
He explained that the FTA was designed not only to boost trade flows but also to “enhance predictability, transparency, and trust for businesses on both sides.”
“At the same time, and that’s why we are also here, it is very clear that the free trade agreement has not yet reached its full potential. Awareness of tariff preferences, rules of a region, and regulatory procedures can still be improved, and continued dialogue between authorities and the private sector, like we’re having today, is essential,” he said.
According to Lyster, the results of the EFTA-Philippines FTA have been encouraging, with Philippine exports to EFTA member states reaching €350 million annually, compared to imports of over €700 million.
While acknowledging the significant imbalance between imports and exports, the diplomat noted that the gap is gradually narrowing.
“The gap is slowly closing. We actually see a larger increase in exports from the Philippines to the EFTA countries than in the growth of exports going the other way, so basically, the gap is slowly closing. And that’s from the Philippine perspective; that is a good thing,” he said.
Exports from the Philippines to EFTA member states have grown by 6.8 percent annually, while imports have increased by just 2 percent since 2014, he noted.
Lyster said that the trade figures clearly demonstrate the agreement is working.
“That means that it is more stuff coming from the Philippines (exports) than coming from EFTA (imports) in recent years.
He said Mindanao exporters could send processed agricultural products, fruits such as coconut and pineapple, as well as seafood.
He pointed out that while Norway is renowned for its seafood, particularly salmon, it does not produce tuna.
The diplomat added that Norway’s most important export to the Philippines is seafood, particularly Norwegian salmon.
He said the key sectors for trade between the Philippines and the EFTA countries include, among others, oil, gas, fisheries, machinery, and services, including maritime transportation.
In a briefer, the economic cooperation between the Philippines and the EFTA “offers significant opportunities for enhanced trade, investment, sustainability partnerships, and technology exchange.”
“Recognized globally for leadership in renewable energy, maritime industries, innovation, sustainability, advanced manufacturing, and green finance, EFTA member states are well-positioned to engage with Mindanao stakeholders in fostering long-term, inclusive, and resilient growth,” it added. (Antonio L. Colina IV / MindaNews)
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