Philippines Set to Embark on Free Trade Talks with European Union

In an optimistic move towards bolstering economic ties, the Philippines is gearing up to commence formal negotiations for a free trade agreement (FTA) with the European Union (EU) imminently. Foreign Affairs Secretary Enrique Manalo, in a statement made in Melbourne, Australia, conveyed the nation’s intentions to AFP, underscoring the strategic aim of enhancing economic resilience through strengthened partnerships.

This forthcoming phase follows the completion of preliminary discussions between the Southeast Asian country and the 27-member EU bloc. Trade Secretary Alfredo Pascual highlighted the progress made towards concluding the initial scoping discussions, setting the stage for substantive negotiations. Speaking at a forum organized by the Joint Foreign Chambers of the Philippines, Pascual emphasized the potential benefits of an FTA, including broader market access and heightened trade relations with the EU.

The European Commission (EC) recognizes the EU as the Philippines’ fourth-largest trading partner, with bilateral trade reaching 18.4 billion euros in 2022. Furthermore, the EU stands as one of the principal investors in the Philippines, demonstrating the significant economic interconnections between the two entities.

Currently, the Philippines benefits from the EU’s Generalized Scheme of Preferences Plus (GSP Plus), which allows for the zero-rated import duty of over 6,000 Philippine goods. This preferential trading scheme, set to expire at the end of 2023, has been pivotal for various Philippine exports, including agricultural products and manufactured goods. The EC has proposed extending the GSP Plus by an additional four years, pending approval from the European Parliament and the European Council.

The anticipated FTA discussions mark a critical milestone in the Philippines’ trade diplomacy, potentially paving the way for an era of enhanced economic collaboration and prosperity between the Philippines and the European Union.