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.
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.
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.
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.
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.
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).
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.
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.
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
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.
Cheese, butter, and other dairy products might have reduced tariffs but not complete elimination.
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:
Switzerland
Immediate Elimination Fruits, cocoa, coffee
Phased Elimination Meats (5-10 years)
Sensitive Products Dairy products, some vegetables
Tariff Reduction Rate Reduced tariffs, no elimination
Example Products Specialty cheeses
Example Products 7 years
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%
