TRADE AND INVESTMENTS between the Philippines and the European Union (EU) are still lower than the level of mutual ambitions and could be improved through a free trade agreement (FTA), the EU ambassador to the Philippines said.
“Trade and investment figures for the whole of 2024 have not yet been published, but we can already say that our bilateral exchanges are not at the level of our mutual ambitions. They are good, but they are not yet at the right level,” Massimo Santoro, Ambassador of the European Union to the Philippines, said at the 9th meeting.e Joint economic briefing on Wednesday.
“While the EU remains, and this is a good thing, the Philippines’ fourth largest trading partner with a share of 11% of Philippine exports and 6% of imports, the Philippines is only the EU’s sixth largest economic partner under ASEAN (Association of Southeast Asian Nations),” he added.
Mr Santoro said there is potential for bilateral trade and investment to grow further and that this can be achieved through a free trade agreement, citing that the aim is to see an annual increase.
“We can do more, given the potential and size of the Philippine market and the country’s resources. “So the aim of our FTA is to take our bilateral economic ties to a new level,” he said.
“Through the FTA, we want to facilitate not only trade in goods, but also trade in services, and create more incentives for investment. We believe that a free trade agreement can serve as a catalyst for economic growth, benefiting businesses, workers and consumers on both sides,” he added.
Last year, the EU and the Philippines formally resumed negotiations on a free trade deal, seven years after talks stalled over the trading bloc’s concerns over human rights abuses under the previous administration.
The first round of negotiations took place in October in Brussels, Belgium, while the second round will from February 10 to 14 in Manila.
“These discussions started with a very positive momentum, and I am confident that this very positive momentum will be maintained so that both sides – the EU and the Philippines – can deliver well and quickly,” said Mr Santoro.
He said the FTA is a priority as it will strengthen trade and economic bilateral ties between the EU and the Philippines.
Before the second round of FTA talks, Mr. Santoro said both sides will continue to work on the chapter discussed in the previous round, and will also discuss other chapters. He did not want to provide other details.
“I am confident that the second round will be as productive as the first, which means a lot,” he added.
President Ferdinand R. Marcos Jr. aims to conclude negotiations on the EU-Philippines Free Trade Agreement by 2027. Philippine negotiators have set an internal goal of concluding negotiations in 2026.
DTI Undersecretary Allan B. Gepty previously said there is a need to conclude FTA negotiations as early as 2026 as the Philippines will lose its preferential market access to the trading bloc once it reaches upper middle-income status.
The Philippines participates in the EU’s Generalized System of Preferences Plus (GSP+), a special incentive scheme for low- and lower-middle-income countries. The country has zero taxes on 6,274 locally produced products.
Meanwhile, the Philippines aims to become an upper-middle-income economy this year and a predominantly middle-class society by 2040. Justine Irish D. Table