Gains

A. Comparative Advantage
Under Heading Code 1604 (prepared or preserved fish, fish eggs, caviar), the Philippines has a
comparative advantage in ‘tunas, skipjack and bonito’. The country is also one of the top exporters of
goods under this product group.

B. An Integrated Regional Market

Secretary-General Rodolfo C. Severino (2002) addressed that there are Philippine industries and
Philippine firms that have gained from ASEAN and thrive in AFTA, and the Philippine economy is
benefiting from it. Figures show that from 1993 to 2000, the Philippines’ exports to other ASEAN
countries grew almost seven times, more than 650 percent. With the adoption of the agreement on the
ASEAN Free Trade Area, ASEAN cooperation projects in the agriculture sector are designed towards
facilitating the realization of free trade in agricultural products among ASEAN member countries. The
fisheries products constitute a substantial proportion of the tariff lines that are in the CEPT scheme. By
lowering barriers to trade regionally, ASEAN, through AFTA, creates an integrated regional market. A
better division of labor is thus stimulated and results to further healthy competition, lowered costs, and
the enlargement of ‘domestic market’.

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