Business
PH SCORES BIG IN
THE 2018 GLOBAL
COMPETITIVENESS
REPORT
T
he Philippines’ (PH) ranking in the 2018 Global Competi-
tiveness Report (GCR) significantly improved to 56th from
68th place in a report released recently by the World
Economic Forum (WEF). The 2018 GCR covers 140
economies representing 99% of global GDP and 94% of
world population. PH is one of the few countries which
gained double digit increase in its ranking.
This year’s GCR adopted a new index called the Global
Competitiveness Index 4.0 (GCI 4.0), which is a “composite
indicator” with 98 indicators distributed across 12 pillars.
GCI 4.0 derived its results from data providers such as the World Bank, WTO, IATA
(air connectivity), ITC (for tariffs) and the Executive Opinion Survey administered
by the World Economic Forum. The GCI 4.0 uses a “distance to frontier” approach
in which performance is evaluated against the frontier of 100.
As the new GCI cannot be compared with the old index, WEF adjusted the 2017
results in order to provide a reference point, and released a 2017 “backcast edi-
tion.” PH’s performance improved as measured by its overall distance to frontier
(DTF) score of 62.1 in the 2018 GCI versus 59.8 last year. PH posted improvements
in all pillars and maintained its good macroeconomy stability performance with a
DTF score of 90.
DTI Secretary Ramon Lopez noted the brand new methodology of the Global
Competitiveness Index and supported the call for governments to address the
factors that will fully capture the dynamics of the global economy in the Fourth
Industrial Revolution, namely resilience, agility, human capital, and innovation.
"From day one, the Duterte Administration has worked on various reform initia-
tives to improve the country’s competitiveness. The recent positive performance
in the refined GCI is a testament of the fruits of all of these reform initiatives, and
we are gearing up for better. We are optimistic that with our ongoing reform ini-
tiatives with the enactment of the EODB/ Efficient Government Act, and efforts to
promote government technology, the country will move us further closer to the
frontier,” said Sec. Lopez.
The country also scored high on e-participation index (DTF: 93.82) under Pillar
1: Institutions. The e-participation index measures an economy’s use of online
services to facilitate provision of information by governments to citizens (e-infor-
mation sharing), interaction with stakeholders (e-consultation), and engagement
in decision-making processes (e-decision making).
The trade chief also noted the relatively lower (DTF) scores across all countries
when it comes to mastering the innovation process, from idea generation to
product commercialization.
Sec. Lopez confirmed that recent government efforts point to this track
through the Inclusive Innovation Industrial Strategy (i3S) as well as the Inclusive
Filipinnovation & Entrepreneurship Roadmap. These will foster development in
the country’s innovation and entrepreneurial ecosystem by strengthening the
collaboration between academe/research community, industry, and government
with focus on market-oriented research that would address societal problems and
industry issues.
Through an MOU, DTI together with the departments of Science and Technology
(DOST), Agriculture (DA), Information and Communications Technology (DICT),
Education (DepEd), and the National Economic Development Authority (NEDA)
and the Commission on Higher Education (CHED) committed to jointly implement
the recommendations of the Filipinnovation Roadmap.
www.dti.gov.ph
66
Joint Statement by Philippine Secretary of
Trade and Industry Ramon M. Lopez and
U.S. Trade Representative Robert E.
Lighthizer
F
ollowing the bilateral meeting between the Philippines and
the United States on August 31, 2018 in Singapore, during
the Association of Southeast Asian Nations Economic Ministers
Meeting, and recalling the Joint Statement Between the
Republic of the Philippines and the United States of America
issued on November 13, 2017, Philippine Secretary of Trade
and Industry Ramon M. Lopez and U.S. Trade Representative
Robert E. Lighthizer are pleased to announce several recent
achievements resolving bilateral trade issues under their
bilateral Trade and Investment Framework Agreement
(“TIFA”).
Both Governments agree that enhanced bilateral engagement on
trade under the TIFA should include work that yields benefits for agricultural
producers, importers, exporters and consumers, and intend to work together in
a number of areas. Specifically, the United States and the Philippines intend to
collaborate on the development of cold chain requirements and best practices
in the Philippines, taking into account international guidelines and codes of
practice regarding food hygiene adopted by the Codex Alimentarius
Commission. This work will build on private sector and local efforts already
underway in the Philippines to improve the existing cold chain. The United
States agrees to make best efforts, subject to availability of U.S. resources, to
provide technical assistance to enhance cold chain development and
management in the Philippines.
The United States welcomes the Philippines’ efforts to ensure the
WTO-consistent valuation of agricultural imports for duty collection purposes,
including the enforcement of laws, regulations, and policies prohibiting the use
of reference pricing.
The Philippines recognizes the U.S. interest in the extension of Philippine
tariff rates on certain agricultural products. The Philippines further recognizes
that said rates would help contribute to stable prices for food products. The
Philippines commits to expeditious consideration of petitions for the extension of
such rates, consistent with established procedural rules.
The United States notes that the Philippines is continuing to protect
geographical indications (GIs) in a manner mutually beneficial to both
countries by ensuring transparency, due process, and fairness in the laws,
regulations, and practices that provide for the protection of GIs, including by
respecting prior trademark rights and not restricting the use of common
names. The United States welcomes the commitment of the Philippines to
further discuss ways to ensure that Philippine laws, regulations, and policies
do not restrict or prohibit entry of U.S. products in the Philippine market. The
Philippines confirms to the United States that it will not provide automatic GI
protection, including to terms exchanged as part of a trade agreement.
The Philippines welcomes the progress made with the United States on a
number of agricultural trade issues related to access to the U.S. market for
mango, young green coconuts, and carrageenan, as well as the expansion of
the Generalized System of Preferences Program to include travel goods.
Both Governments pledge to cooperate on the implementation of a U.S.
work program in the context of the ASEAN-United States Trade and Investment
Framework Arrangement on automotive standards issues. The United States
recognizes the Philippines’ commitment to the continued acceptance of
vehicles that meet multiple high-standard automotive standards, including,
among others, the U.S. Federal Motor Vehicle Safety Standards (FMVSS).
Both Governments agree to continue technical dialogue and policy
discussions on the National Retail Payments System (“NRPS”) and other
measures related to electronic payment services, including domestic retail
debit and credit electronic payment transactions. The United States
recognizes the Philippines’ goal of increasing Philippine consumers’ use of
electronic payments for domestic retail transactions and further welcomes the
Philippines commitment to policies that permit cross-border supply of
electronic payment services, do not restrict the total number of service
suppliers, and do not favor any domestic suppliers over international suppliers.
Both governments agree to a continued dialogue on priority issues of
interest to both countries, including for the Philippines, discussions on seeking
relief from U.S. safeguard measures on solar cells and Section 232 tariffs on steel
and aluminum.
www.dti.gov.ph