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PH-EFTA FTA Case Model

Overview of PH-EFTA Case Model

  1. 01
    Scope and Coverage EFTA's Limited Membership

    Small Group of Economies: EFTA consists of four countries (Iceland, Liechtenstein, Norway, and Switzerland) with a collective focus on trade in goods and services, unlike larger agreements involving multiple nations with diverse economic profiles, such as the ASEAN Free Trade Area (AFTA).

    Exclusion of Agriculture: EFTA generally excludes comprehensive agricultural trade liberalization compared to FTAs like the EU-Philippines FTA, which often covers agriculture in detail.

  2. 02
    Focus on Trade and Economic Cooperation

    Comprehensive Goods and Services: Unlike some FTAs that may focus primarily on goods (e.g., the Philippines-Japan Economic Partnership Agreement or PJEPA), PH-EFTA includes extensive provisions for both goods and services, making it broader in scope.

    Investment and IPR: Emphasizes investment and intellectual property rights, more so than agreements with ASEAN countries which may have varied focus.

  3. 03
    Tariff and Non-Tariff Measures

    Immediate Liberalization: Provides for immediate or phased tariff reductions on a significance number of goods, which may differ from other FTAs where tariff eliminations are more gradual or selective.

    Specific Product Lists: EFTA agreements often include specific schedules for different products, whereas other FTAs might use broader categories.

    Advanced Customs Cooperation:

    Focuses on advanced customs procedures and technical barriers to trade, possibly more detailed than FTAs with developing nations that may not have as complex regulatory environments.
  4. 04
    Investment and Intellectual Property

    Stronger IPR Protections: EFTA countries often require high standards of intellectual property rights protection, potentially more rigorous than agreements with regional partners where standards might be aligned to local capacities.

    Investment Protection: Emphasizes investment protection measures that may be more detailed compared to regional FTAs.

  5. 05
    Dispute Settlement Mechanisms

    Structured Mechanisms: Incorporates structured and formalized dispute settlement mechanisms, which can be more developed than those in regional or bilateral agreements, aiming to align with international norms.

  6. 06
    Sustainable Development

    Higher Standards: Includes strong commitments to environmental protection and labor standards, which might not be as prominently featured in FTAs with less emphasis on sustainable development.

    Specific Provisions: Contains detailed provisions for sustainability compared to broader goals seen in agreements like the Regional Comprehensive Economic Partnership (RCEP).

  7. 07
    Geographical Indications

    Focus on Geographical Indications: Emphasizes the protection of geographical indications (GIs), particularly important for EFTA countries, unlike some regional FTAs which may not prioritize this.

  8. 08
    Consumer and Market Benefits

    Access to EFTA Products: Provides access to high-quality EFTA products (e.g., pharmaceuticals, technology) that might not be emphasized in FTAs with other regions focusing more on mass-market goods.

  9. 09
    Regulatory Cooperation and Standards

    Regulatory Alignment: Includes provisions for harmonizing standards and regulations, potentially more in-depth than agreements with countries that have less developed regulatory frameworks.

  10. 10
    Trade in Service

    Diverse Service Sectors: Encompasses a wide array of services including financial services, which can be more specific compared to agreements primarily focusing on goods.

Utilization of low-tariff imported raw materials.

Tariff Elimination Rates for Agricultural Raw Materials under PH-EFTA FTA

EFTA’s Approach

EFTA countries (Iceland, Liechtenstein, Norway, and Switzerland) generally have high standards and protective measures for their agricultural sectors. However, they have agreed to eliminate tariffs on many agricultural raw materials to facilitate trade with the Philippines.

Immediate vs. Gradual Elimination

Some tariffs are eliminated immediately, while others are phased out over several years, depending on the sensitivity of the products.

Immediate Gradual
Tariff Reduction
Sensitive
Agricultural Products

Product specific examples

Immediate Gradual Tariff Reduction Sensitive Agricultural Products
Examples of Agricultural Raw Materials with Immediate Tariff Elimination
Tropical Fruits Image
Tropical Fruits

Bananas, pineapples, mangoes often receive immediate tariff-free access.

Raw Coffee Beans  Image
Raw Coffee Beans

Generally benefit from immediate tariff elimination.

Cocoa Beans Image
Cocoa Beans

Typically subject to immediate tariff elimination under EFTA agreements.

Immediate Gradual Tariff Reduction Sensitive Agricultural Products
Examples of Agricultural Raw Materials with Gradual Tariff Reduction
Meats Image
Meats

Certain meats like pork and poultry might have tariffs reduced gradually.

Processed Agricultural Products Image
Processed Agricultural Products

Processed forms of agricultural products may see phased tariff reductions rather than immediate elimination.

Immediate Gradual Tariff Reduction Sensitive Agricultural Products
Examples of Sensitive Agricultural Products
Dairy Products Image
Dairy Products

Cheese, butter, and other dairy products might have reduced tariffs but not complete elimination.

Certain Vegetables Image
Certain Vegetables

Some vegetables that compete directly with local production may have reduced rather than eliminated tariffs.

Detailed provisions for Tariff Elimination (Philippines -> EFTA ; when exporting) To provide a precise understanding, here's a detailed representation for agricultural raw materials:

Philippines Flag
Switzerland

Immediate Elimination Fruits, cocoa, coffee

Phased Elimination Meats (5-10 years)

Sensitive Products Dairy products, some vegetables

Philippines Flag
Liechtenstein

Immediate Elimination Similar to Switzerland

Phased Elimination Similar to Switzerland

Sensitive Products Similar to Switzerland

Philippines Flag
Norway

Immediate Elimination Fruits, certain grains

Phased Elimination Meats, processed foods (5 years)

Sensitive Products Fish, seafood, some dairy

Philippines Flag
Iceland

Immediate Elimination Tropical fruits, coffee

Phased Elimination Meats, processed foods (3-5 years)

Sensitive Products Local vegetables, dairy

  • Cocoa and Coffee Image Cocoa and Coffee Image
    Cocoa and Coffee

    Tariff Reduction Rate Immediate elimination(0%)

    Example Products Cocoa beans, raw coffee

    Example Products Immediate

  • Tropical Fruits Image Tropical Fruits Image
    Tropical Fruits

    Tariff Reduction Rate Immediate elimination(0%)

    Example Products Mangoes, bananas, pineapples

    Example Products Immediate

  • Processed Fruits/Veg Image Processed Fruits/Veg Image
    Processed Fruits/Veg

    Tariff Reduction Rate Phased reduction

    Example Products Canned fruits, frozen vegetables

    Example Products 3-5 years

  • Meat Products Image Meat Products Image
    Meat Products

    Tariff Reduction Rate Gradual reduction

    Example Products Pork cuts, poultry, sausages

    Example Products 5 years

  • Dairy Products Image Dairy Products Image
    Dairy Products

    Tariff Reduction Rate Gradual reduction

    Example Products Milk powders, cheese

    Example Products 5-7 years

  • Specialty Dairy Image Specialty Dairy Image
    Specialty Dairy

    Tariff Reduction Rate Reduced tariffs, no elimination

    Example Products Specialty cheeses

    Example Products 7 years

  • Animal Feeds Image Animal Feeds Image
    Animal Feeds

    Tariff Reduction Rate Phased reduction

    Example Products Specific feed categories

    Example Products 3 years

[Cost reduction Model for Philippines Specialty Products]

PH-EFTA is an FTA specialized in agricultural products, offering an opportunity to reduce costs when exporting processed food products from the Philippines.

Change of raw material import routes utilizing PH-EFTA For example, when importing yogurt from EFTA MFN rate for 0403.20 is 7% but PH-EFTA rate is 0%

1.Importation of raw materials at low or zero tariffs 2.Production of Mango based Drinking prodiucts 3.Prepare for exporting 4-1.Export to FTA partner Countries 4-2.Low-cost exports to various regions 1.Importation of raw materials at low or zero tariffs 2.Production of Mango based Drinking prodiucts 3.Prepare for exporting 4-1.Export to FTA partner Countries 4-2.Low-cost exports to various regions
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