TIM eMagazine Volume 3 Issue 8 | Page 66

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