The Philippine India Business Council together with The Indian Embassy in the Philippines, the Philippine Chamber of Commerce and Industry and in partnership with the Department of Trade and Industry is enticing free trade between Philippines and India. This was clearly expressed during the 7th PIBC meeting held on August 25th at The Intercontinental Hotel, Makati. This meeting was under the series “Doing Business with India”

Speakers that graced the event were Amb. Benedicto Yujuico, Co-Chairman, International & Trade Affairs PCCI; Mr. Amrit Lugun Councilor of the Indian Embassy; Mr. Vichael Angelo D. Roaring Commercial Attaché, Phil. Trade and Investment Center; Mrs. Rani Sudhakar Country Manager New India Assurance Co.; Mr. Brahm Prakash PhD. Adjunct Professor-Asian Business Systems, AIM; Mr. Jose Luis Gonzales President & CEO BoNa Coffee Holdings, Corp. and Mr. Raju Mandyan former Chairman of PIBC.

The Philippines, along with the nine other members of the Association of Southeast Asian Nations, signed early this month an agreement with India for the free trade of goods. Tariffs on 90% of products will be eliminated by 2016 at the earliest, with cuts beginning in January next year.

The Indian Embassy was represented by Counselor Amrit Lugun. He said that the Philippines should consider forging a free trade deal with India on top of an existing regional pact, in order to keep up with Southeast Asian peers like Malaysia, Singapore and Thailand who already enjoy bilateral agreements with the world’s second most populous country.

“Singapore signed a comprehensive economic partnership agreement with India in 2005, while Thailand has a similar edge with an “early harvest” program already providing it preferential entry into India, Mr. Lugun said. “Therefore, the Philippines should also think along those lines of signing an FTA. India is open to one,” he said. South Korea also signed an agreement, the full details you can read below.

The Philippines’ first ever commercial attaché to be assigned to the Philippines Embassy in India, New Delhi, Vichael Angelo D. Roaring, for this part said at the briefing that the nine-year schedule for tariff cuts “is a long time.” “But, hopefully, we would have leapfrogged in our share of trade [with India] by then,” Mr. Roaring said. Mr. Roaring went to point out that the Philippine exporters, particularly of furniture and processed food, should “get out of their comfort zones in the US and Europe” and consider the Indian market.

Total trade between the two economies amounted to $808 million last year, merely 0.8% of the Philippines’ $105.672-billion trade with the world, central bank data shows.
Moreover, local firms, especially those in the furniture, processed food and pharmaceutical industries will do well to explore trade opportunities with India, experts said at the event.

PIBC Chairman, Mr. Johnny Chotrani for his part gave basic facts about India during his closing remarks. On the other hand, Mr. Raju Mandhyan, former chair of PIBC said “The South Asian economy is the 12th largest consumer market in the world, with 400 million citizens in the middle class so the potential is enormous.

Congratulations. Keep it up.

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South Korea also signs agreement with India

India and South Korea have signed a trade deal known as the Comprehensive Economic Partnership Agreement. The pact was sealed by Indian Commerce Minister Anand Sharma and his Korean counterpart Kim Jong-Hoon, and it will cover tariff reductions, goods and services, investments and competition issues, providing Seoul an advantage over its Asian rivals in tapping the sub-continent’s market of 1.1 billion people.

It is expected to take effect upon South Korean parliament’s ratification early next year. The two-way trade worth $15.56 billion dollars last year, the two economic powerhouses of Asia will have reciprocal reductions in tariffs as a result of the agreement 85 percent of the Korean exports and 90 percent of India’s overseas sales within the next decade, the Seoul officials said.

After three years negotiations, South Korea finally made a break-trough in its active push for trade pacts worldwide to bolster its export-dominated economy. While in the service sector, India agreed to open advertising markets telecom, medical and accounting to South Korean companies, while the South Korean banks will also be allowed to open branches in India.

This is the first deal with the so called BRIC (Brazil, Russia, India and China) group of fast developing world economies and Seoul officials say it gives the nation greater access to a potentially huge market ahead of trade of rivals China and Japan.