To familiarize everyone with key socioeconomic terms and concepts, we are launching this new social media series.
For this week, our buzzword is “free trade agreement”.
It refers to a deal between or among countries intended to create more opportunities for trade and investment, typically by removing or reducing barriers or restrictions in importing and exporting goods and services.
Source: US International Trade Administration
A PIDS study found that the Philippines has not been using FTAs for its exports as much as it does for imports. In the early 2010s, only 4 to 5 percent of exports were under FTAs. This dipped to 0.6 percent in 2017 and rebounded to 3.4 percent in 2020. However, the share of imports under FTAs was 8.3 percent in 2011 and grew to 30.5 percent in 2020.
Know more about FTA utilization in the Philippines by reading "FTA Utilization in the Philippines: Trends and Determinants" available at https://www.pids.gov.ph/publication/discussion-papers/fta-utilization-in-the-philippines-trends-and-determinants.
