Makati City:Authorities from the Philippines and India are planning to commence discussions on a proposed preferential trade agreement (PTA) by the next year to enhance economic opportunities and boost growth.

According to Philippines News Agency, Indian Ambassador to the Philippines, Harsh Kumar Jain, mentioned that trade between India and the Philippines currently represents about 3 percent of India's total trade with the 11-member Association of Southeast Asian Nations (ASEAN). Jain estimated India's trade with ASEAN at USD128 billion and its trade with the Philippines at USD3.9 billion.

Jain noted that despite the Philippines contributing 11.6 percent to ASEAN's GDP, its trade with India accounts for only a small fraction of India's trade with ASEAN. This suggests potential for an improved trade relationship, hence the interest in establishing a preferential trade agreement between the two countries.

The terms of reference for the negotiating committee have already been agreed upon, according to Jain, but they are awaiting the completion of the ASEAN-India Trade in Goods Agreement (AITIGA) next year.

Trade Undersecretary Allan Gepty, who spoke at the ASEAN-India Business Forum in Makati City, confirmed that the aim is to start negotiations next year. The intent is to expedite the process and conclude the agreement as soon as possible.