By Brian Jules Campued
The Philippines and the European Union (EU) are set to resume the negotiations for the Philippines-EU Free Trade Agreement (FTA), Department of Trade and Industry (DTI) Secretary Alfredo Pascual said Monday.
Pascual made the announcement with European Commission Executive Vice Commissioner Valdis Dombrovskis in a joint press briefing in Brussels, Belgium—providing for deeper economic ties and mutual benefits between the Philippines and the EU.
Although formal talks on PH-EU FTA have stopped in 2017, a comprehensive stocktaking exercise conducted by DTI and the European Commission from September to December 2023 made the resumption of negotiations possible.
“The conditions are right to take our trade relations to the next level. Trade between the EU and the Philippines is already strong and has been growing at an impressive pace over the past decade,” said Dombrovskis.
Pascual noted that strengthening engagements with the EU remains a priority for the Philippines as it is one of the country’s largest trading partners and sources of investments.
According to DTI, total PH-EU bilateral trade reached US$16.16 billion, contributing an 8.1% share to the country’s overall trade.
“Similarly, the EU has been a major foreign investment partner, with total foreign direct investments reaching US$29.16 million in 2022 and US$63.99 billion in 2023,” the DTI statement read.
Meanwhile, Pascual said the PH-EU free trade deal aims to provide enhanced market access for goods, services, and investments from the current EU Generalised System of Preferences Plus (GSP+).
DTI said the GSP+ offered zero tariffs on more than six thousand tariff lines or 66% of all EU tariff lines, benefiting communities including General Santos, Davao, and Cebu.
“A modern, comprehensive and values-based free trade agreement with this fast-growing economy would open new opportunities for both sides, strengthen our supply chains, and promote sustainable trade. It would also deepen ties with a key partner in the burgeoning Indo-Pacific region,” said Dombrovskis.
The FTA will also ensure mutual market access and diversify supply chains, as well as attract more investments, particularly in infrastructure, digital technology, research, renewable energy, and green transition.
“As we look ahead, the Philippines is committed to deepening economic ties and fostering cooperation with the EU across emerging trade areas like critical raw materials, climate change, environmental sustainability, labor, and good governance,” Pascual added. – avds