THE government sees further improvement in the country’s revenues from services trade due to the enactment of the Competition Act, with the boost coming from the foreseen increase in the Philippines’s participation in global value chains (GVCs).
National Economic and Development Authority (Neda) Deputy Director General Emmanuel F. Esguerra said the level playing field that the new law promotes is sure to attract more investments from companies in the services GVC.
With an enabling environment for the flourishing of GVCs in the Philippines, Esguerra said the country will be able to solidify its footing in the global services trade.
"GVCs now account for more than 50 percent of global trade. The significant role of GVCs in international services trade creates a sense of urgency to make the services sector more competitive. So it’s very important for us to do further analytical work in the area,” said Esguerra, who is also the Asia-Pacific Economic Cooperation (Apec) Group on Services convener.
In a paper for the Apec 2015 Research Project, the Philippine Institute of Development Studies explained that GVCs constitute value chains that produce goods and services globally.
Esguerra noted the importance of developing innovative services within GVCs and prioritizing services on the development agenda, addressing services and investment restrictions and achieving balance in regulatory reform, among others.
The Neda official added that GVC-related initiatives, along with appropriate legal instruments, will contribute to the work on structural reform.
"We would like to see greater participation of services in various GVCs that will increase productivity and add value to goods produced. In the process these will create more jobs and make growth more inclusive,” Esguerra said.
Esguerra led the Philippine delegation to the third Apec Senior Officials’ Meeting during the Joint Meeting of the Apec Group on Services and Market Access Group (GOS-MAG).
The joint GOS-MAG meeting showcased studies on how select Apec economies opened markets for services in specific sectors so they can benefit from their participation in GVCs.
Apec discussions on GVCs in services trade will also be discussed at the Apec Structural Reform Ministerial Meeting on September 7 and 8 in Cebu.//
