The Philippines is pushing for zero tariffs on all electronic and semi-conductor products among ASEAN, Association of Southeastern Asian Nations, in this article. According to ASEAN statistics nearly 70% of all exports in the Philippines are accounted for by electronic products. By abolishing any tariffs on these goods throughout the member countries of the ASEAN, it would be extremely beneficial for all of the members and especially for Philippine electronic exporters. Zero tariffs would create an open free-trade market between these countries and make them much more competitive in the international electronics market.
While increasing trade between ASEAN countries production costs could possibly also be decreased and would allow for ASEAN electronic products prices to decrease in response to lowered production costs. Assuming that the electronics produced in ASEAN countries are somewhat homogenous with the global market, lowering good prices will only be beneficial. Primarily in the case for the Philippines, where electronics account for 70% of exports, it would only mean good news for the Philippine economy and its population.
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Interesting article….this means that indirectly Philippines are hoping to boost their competition power through ASEAN as they become the “first to be among the 11 sectors which will have zero tariffs next year.” I think it is a good idea for ASEAN to present itself as a supplier base and a manufacturing platform because such environment will most definitely attract foreign investors in numbers as said in the article.
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