FTA talks with EU seen concluding by midyear
THE PHILIPPINES is hoping to conclude negotiations on a free trade agreement (FTA) with the European Union (EU) by the middle of the year, Trade Secretary Ma. Cristina A. Roque said.
“By this year we will be able to conclude, hopefully by June or July, the EU FTA. This will be a game changer for a lot of the industries in the Philippines,” she said during the ASEAN Business Environment Forum on Wednesday.
“If we conclude by June or July, we will sign (the FTA) by next year.”
The Philippines also looking to finalize pending FTAs with Canada and Chile this year, Ms. Roque said.
“For Chile, we might be able to sign this year,” she noted.
The Philippines is looking to conclude FTA negotiations with the EU soon, ahead of the expiry of Philippine eligibility for the EU’s Generalized Scheme of Preferences Plus (GSP+) scheme in 2027.
Over 70% of Philippine exports are shipped to markets with active FTA and GSP arrangements.
The Philippines could have access to additional exports of about $12 billion once the EU FTA is finalized, the DTI said last month.
“We must find a way to be competitive globally, and an FTA is the direction that our President is taking,” Ms. Roque said.
The Philippines is under pressure to diversify its trading partners in the wake of the disruptions caused by US tariffs as well as ongoing wars.
The government is seeking to conclude 20 FTAs by the end of the Marcos administration.
The DTI is also working closely with the Asian Development Bank in developing the ASCEND Program in support of the ASEAN Semiconductor roadmap, creating strategic investment pathways, and promoting R&D to make ASEAN a global hub for high-tech manufacturing, Ms. Roque said.
The DTI is launching P3-billion export business expansion fund on March 12 to help boost exporters’ access to capital, Ms. Roque said.
She said exporters that tap the fund require no collateral, with a one-year grace period on both principal and interest.
The agency is also exploring measures to digitalize manual processes, streamline business processes, and increase transparency in all regulatory dealings. — Beatriz Marie D. Cruz
