E.U. and the Philippines will make their respective technical preparations for the first round of the resumed negotiations, expected to take place later this year
The European Union (E.U.) and the Philippines officially have announced the resumption of negotiations for an ambitious, modern and balanced Free Trade Agreement (FTA)
The E.U. and the Philippines first launched negotiations for an FTA in 2015. The last negotiating round took place in 2017 and negotiations have since been on hold.
These FTAs are a cornerstone of the E.U.’s economic security, opening new opportunities for businesses and consumers, strengthening supply chains and promoting sustainable trade practices. An FTA with the Philippines, boasting a burgeoning economy with a population of 115 million situated at the core of the strategically significant Indo-Pacific region, would undoubtedly enhance the E.U.’s network of FTAs.
Taking it to X, the President of the European Commission – Ursula von der Leyen, tweeted,
I welcome the resumption of trade negotiations with the Philippines.
— Ursula von der Leyen (@vonderleyen) March 18, 2024
An important deliverable of the shared vision I discussed with President @bongbongmarcos during my visit to the Philippines in August.
A trade agreement will deepen our ties, bringing us even closer together.
With sustainability at its core, the E.U. aims for a comprehensive FTA with the Philippines that includes ambitious market access for goods, services, investment and Government procurement. It is also eyeing the removal of obstacles to digital trade and trade in energy and raw materials, thereby supporting the digital and green transitions. It will also include a commitment to work towards swift and effective sanitary and Phyto-Sanitary (SPS) procedures.
The FTA will also include an agreement to develop Sustainable Food Systems (SFS) in the Philippines. It also covers the protection of Intellectual Property (IP) rights, including Geographical Indications (GIs) and robust and enforceable disciplines on Trade and Sustainable Development (TSD).
The E.U. and the Philippines already have well-established trade relations. The E.U. is the Philippines’ 4th largest trade partner. The Philippines, the 5th largest economy in the Association of Southeast Asian Nations (ASEAN) region, is the E.U.’s 7th most important trading partner in the region.
The trade in goods was worth over € 18.4 billion in 2022, while trade in services was worth € 4.7 billion in 2021. The E.U. is one of the largest investors in the Philippines, with the E.U.’s Foreign Direct Investment (FDI) stock in the Philippines reaching € 13.7 billion in 2021.
Separately, the Philippines also has major reserves of critical raw materials, including nickel, copper and chromite, which are vital for the manufacture of green technologies, which means that the Philippines can be an important partner for the E.U. in driving the Green Transition.
Going ahead, the E.U. and the Philippines will now make their respective technical preparations for the first round of the resumed negotiations, expected to take place later this year.
Presently, the Philippines enjoys trade preferences under the E.U.’s Generalised Scheme of Preferences + (GSP+), a special incentive arrangement for sustainable development and good Governance which grants duty-free access to the E.U. market for 2/3rd of tariff lines.
