PH and Chile to Begin Free Trade Agreement Negotiations in March

The Philippines and Chile are set to commence the first round of negotiations for a free trade agreement (FTA) in March, with Philippine negotiators led by Trade Undersecretary Allan Gepty traveling to Santiago for the discussions.

Gepty announced the plan to finalize scoping by January before initiating talks in March, signaling both countries’ intent to deepen economic ties valued at over $140 million annually.

Expanding Economic Opportunities

The FTA aims to boost trade and diversify both nations’ economic sources. Chief economist Michael Ricafort of Rizal Commercial Banking Corp. highlighted the potential benefits for the Philippines:

• Import Diversification: Negotiating for key imported goods to strengthen local supply.
• Export Growth: Creating opportunities for Philippine products not readily available in Chile.

Ricafort noted the agreement could pave the way for similar FTAs with other South American countries, bolstering regional trade partnerships.

China Bank Capital Corp. managing director Juan Paolo Colet emphasized the strategic importance of FTAs in expanding export markets and strengthening bilateral ties:

“We need to strengthen our export sector as a key contributor to domestic growth. FTAs are critical, especially in light of potential global trade challenges such as new tariffs.”

Current Trade Dynamics

In 2023, two-way trade between the Philippines and Chile reached $141.24 million:

• Philippine Exports to Chile: $37.84 million
• Philippine Imports from Chile: $103.41 million

The upcoming FTA discussions aim to enhance these figures, benefiting industries in both nations.