Aiming High: Philippines Sets 2027 Goal for Landmark EU Free Trade Agreement

President Ferdinand Marcos Jr. is setting his sights on finalizing a free trade agreement (FTA) with the European Union by 2027, a move aimed at bolstering the Philippines’ trade relations and economic growth. This announcement was made during the 2024 European-Philippines Business Dialogue and European Investors’ Night in Makati City.

A Revival of Trade Negotiations

The negotiations for the Philippines-European Union Free Trade Agreement (PH-EU FTA) originally began in 2015 under the administration of President Benigno Aquino III. However, the discussions stalled during Rodrigo Duterte’s presidency, largely due to strained diplomatic relations caused by his controversial policies, including his administration’s war on drugs. With President Marcos Jr.’s recent visits to Germany and the Czech Republic in March, talks have been reinvigorated, reflecting a renewed commitment to enhancing bilateral trade ties.

Strategic Economic Enhancements

President Marcos Jr., through his Executive Secretary Lucas Bersamin, expressed optimism about the FTA, highlighting its potential to elevate trade and investment flows between the Philippines and the EU. The agreement is expected to include advanced provisions for digital trade and intellectual property rights, which are crucial for modernizing and expanding the economic relationship between the regions.

Investment Opportunities and Infrastructure Development

In addition to the trade agreement, President Marcos Jr. emphasized the Philippine government’s openness to European investments, particularly through public-private partnerships (PPPs). Under the “Build Better More” program, the administration has identified 185 major infrastructure projects valued at US$161 billion, offering substantial opportunities for foreign investment in sectors critical to the country’s development.

The Road Ahead: Challenges and Expectations

As the 2027 deadline approaches, the Philippines faces the challenge of navigating complex international negotiations to secure a deal that benefits both parties. The successful finalization of the PH-EU FTA would not only strengthen the Philippines’ position in global trade but also potentially usher in a new era of economic prosperity and international cooperation.

Conclusion

The PH-EU FTA represents a significant step forward in the Philippines’ foreign relations and economic strategy. By enhancing trade partnerships and opening up new avenues for investment, the Philippines aims to achieve a more robust and dynamic economic landscape by 2027.