The Philippines-European Union Free Trade Agreement (PH-EU FTA) is a symbol of a shared vision for a future of prosperity and collaboration, President Ferdinand R. Marcos Jr. said Monday, as he expressed hope to finalize the negotiations for the deal by 2027 to boost trade and investment between the two parties.
“We see the FTA as a crucial step in enhancing the trade partnership between the Philippines and the EU,” President Marcos said in a message delivered by Executive Secretary Lucas Bersamin during the 2024 European-Philippines Business Dialogue and European Investors’ Night in Makati City.
“We look forward to negotiations being finalized by 2027 and to elevating trade and investment flows through a comprehensive agreement that includes advanced provisions for digital trade and intellectual property rights,” he said.
The FTA negotiations are a milestone in the Philippine-EU partnership as both sides reaffirmed their commitment to crafting a comprehensive and balanced agreement that will elevate trade and investment flows between their regions.
The Philippine government, he said, is optimistic that the FTA will unlock new opportunities, significantly increasing market access for Philippine goods and services and at the same time, facilitate the flow of investments, technology, and expertise, bringing mutual benefits to both sides.
“The FTA is more than just an agreement; it is a symbol of our shared vision for a future of prosperity and collaboration,” President Marcos said.
According to the President, the FTA’s potential benefits are immense as its projected increase in trade of 6 billion euros underscores the vast opportunities available in various sectors.
The country welcomes continued EU investment in key sectors aligned with innovation and sustainability such as in renewable energy, and electronics manufacturing that leverage on the strengths of the Philippines’ exports, and emission reduction goals through automotive/e-vehicle investments, said the President.
The IT-BPM sector also offers significant growth potential in data analytics and software, while public-private partnerships (PPPs) in sustainable infrastructure are expanding, he said, adding that the Philippines also offers European companies opportunities in agricultural and fishery processing.
To maximize the benefits of the FTA, he said the Philippine government has enacted significant reforms enhancing the business environment, such as the Retail Trade Liberalization Act, the Foreign Investment Act, and the Public Services Act.
The Green Lanes Initiative for Strategic Investments, led by the trade department, aims to streamline the process of investment approvals for strategic projects, the President pointed out.
The FTA will also help secure the gains achieved through the EU’s Generalized Scheme of Preferences Plus (GSP+), which has already spurred export growth through preferential tariffs.
“The GSP+ arrangement, which will expire in 2027, has significantly benefited our communities, including tuna fishers, banana, cacao, and pineapple farmers, with a utilization rate of 77 percent in 2022,” he noted.
The EU’s Generalised Scheme of Preferences Plus (GSP+) gives developing countries a special incentive to pursue sustainable and good governance, with the bloc in return cutting to zero more than two thirds of the tariff lines of their exports. |PND
