THE European Commission (EC) and the Philippines, represented by the Department of Trade and Industry (DTI), said on Monday that both sides have agreed to start formal negotiations for a free trade agreement (FTA) aimed at increasing bilateral trade by 6 billion euros.
At a briefing in Brussels, EC Executive Vice-President Valdis Dombrovskis said that the conditions are suitable for the parties to take trade relations to the next level.
“The European Union (EU) is the Philippines’ fourth (largest) trading partner, and the FTA is projected to increase trade by up to 6 billion euros,” Mr. Dombrovskis said.
He said that trade in goods between the EU and the Philippines totaled 18.4 billion euros in 2022.
Trade Secretary Alfredo E. Pascual said that the formal start of the negotiations, for which he gave no date, follows a comprehensive stock-taking exercise that Philippine and EU officials undertook from September to December 2023.
“This process helped identify mutual ambitions and resolve issues lingering from the last negotiation round in 2017, setting a constructive tone for our discussions going forward,” Mr. Pascual said.
He said that the Philippines is emerging as a prime destination for foreign investment especially in areas related to climate change and ESG initiatives.
“As the center of economic growth shifts to the vibrant Southeast Asian region, the Philippines stands as a crucial ally of the EU and we’re ready to engage in meaningful economic reforms to make this happen,” he added.
He said that the FTA is anticipated to significantly expand market access in goods, services, and investments, enhance commercial interactions, create valuable opportunities, and establish reciprocal rules. — Justine Irish D. Tabile
