27 July 1995

PHILIPPINES COMMITS TO MAJOR TARIFF REDUCTIONS

President Ramos signed an executive order on Saturday 22 July which will further implement his administration's plan to reduce all tariffs to five per cent by 2004.

"The continuing reduction of tariff barriers in the Philippines is a confirmation of the trend towards trade and investment liberalisation within the region. Importantly, it demonstrates the very positive effect APEC has in maintaining the momentum for trade liberalisation in the region," Senator McMullan said.

"This action by the Philippines will provide an important contribution to the implementation of the commitment made by APEC Leaders at Bogor last year to achieve free trade and investment."

"The Philippines will chair APEC in 1996 and its recent commitment to significantly reduce its tariffs will give the Philippines a strong basis from which to push forward next year with the implementation of the Bogor committment for free trade and investment."

Senator McMullan said that Australian exporters stood to gain from the increased access to the Philippines market.

The overall growth in the Philippines economy together with the tariff liberalisation program should expand markedly the possibilities for Australian exporters. While the details of the recent liberalisation announcement are still to be released, tariffs on a range of raw materials, of which Australia is a key regional supplier, have been reduced to as low as three percent.

Australian exports of manufactures to the Philippines have been growing steadily, and tariffs on a range of manufactures have been reduced to 10 to 30 percent.

For more information Steve Gartland 06 277 7420 / 018 482 887 Bob McMullan Minister for Trade