[SIZE=4]Local auto parts makers see gains from trade pact
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By Abigail L. Ho
Philippine Daily Inquirer
First Posted 23:06:00 06/07/2010


LOCAL manufacturers of auto parts and components are expected to be the largest beneficiaries of the country’s participation in the Asean-Australia-New Zealand Free Trade Agreement (AANZFTA), which took effect at the start of the year.


Based on findings of a trade mission made up of Filipino auto parts makers in Australia early last year, there was a lot of demand there for parts that local manufacturers were capable of producing, Trade Senior Undersecretary Thomas Aquino said.


With Australia’s huge motor vehicle market, registering an average demand of 1 million units a year, there is room enough for another player in the Australian auto parts market, he added.


Also, parts for offroad vehicles, which do not have much of a market in the Philippines, may be manufactured here and shipped to Australia, where such vehicles are very popular, Aquino said.


“We’ll talk to existing assemblers in Australia, including Toyota and Ford,” he said. “Local parts makers are also looking for certification services there, as there is no certifying body here. We need to have our products certified before we can enter the Australian market.”


The Department of Trade and Industry is also working on having a delegation of Australian auto parts makers come to the Philippines, Aquino said.


Other possible local beneficiaries of the AANZFTA are manufacturers of copper wires and cables, and producers of packaging materials.
Aquino said local furniture makers could also take advantage of zero duties for their products in Australia and New Zealand, but they would have to comply with stringent quarantine requirements of both countries.

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