PH accession to UN Convention on CISG to boost exports — PhilExport


Philippine exporters are amenable to the country’s accession to a flexible and uniform international sales law that reduces an important barrier to cross-border trade in a bid to boost exports.

The United Nations Convention on Contracts for the International Sale of Goods (CISG) becomes relevant as it responds to the need for a uniform sales law with international application and acceptance, Leonor Abella, vice president for Promotions of Philippine Exporters Confederation Inc. (PhilExport) said on May 26.

“Free trade agreements and increasing global trade liberalization present many, varied and exciting opportunities for growth and expansio n for global supply chain players that can adapt to international trade rules well,” she said.

Abella noted that adopting CISG is expected to contribute to establishing some common disciplines and certainty in commercial exchanges.

“This is welcome in light of this cross-border trading regime,” she said.

PhilExport said CISG also promotes and respects the freedom of parties to deviate from its provisions, including the election to opt out of CISG and choose the application of an entirely different body of law.

Abella said the choice may include the application of the domestic law if fitting and if agreed by both parties.

“Clearly, the CISG offers an option for those who prefer a rule that discourages results based on formal legal terms,” she added, citing a paper by the Department of Justice (DOJ).

Abella further said the accession to CISG adds real value in that most of the country’s export markets are also signatories of the Convention.

These include Japan, United States, China, Singapore, Korea, the European Union, Australia, New Zealand and the Netherlands, along with other emerging markets such as Brazil, Russia, among others.

“An immediate accession is expected to provide a positive signal and confirmation of our interest to further promote international trade, especially Philippine exports,” Abella added.

The DOJ paper also said the Philippines can benefit from accession to CISG amid efforts of the Association of Southeast Asian Nations to harmonize trade laws and that the largest trading partners of the Philippines are all parties to CISG.

“. . . It is our view that clearly it is to the advantage of the Philippines that it continues to take steps to accede to the UN Convention on CISG before it finds itself left behind by its Asian neighbors and other countries aiming to promote their international trade,” said Rosario Elena Laborte-Cuevas, senior state counsel at the DOJ.


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