RP, EU sign 3.5-million euro grant agreement

Foreign Affairs Secretary Alberto Romulo and Ambassador Johannes de Kok, head of the European Commission Delegation to the Philippines, exchanged yesterday the signed original agreement for the 3.5 million euros grant to fund the country’s Trade Related Technical Assistance program aimed at making trade an effective development and a poverty reduction tool.

The trade agreement between the Philippines and the European Community (EC) signals the implementation of the program that will enhance market access of Philippine products to the European Union (EU) market.

Romulo signed the financing agreement for the Philippine government in Manila on Thursday while EuropeAid Cooperation Office director Erich Muller signed the agreement for the European Commission (EC) side in Brussels last Feb. 7.

Total cost of the program is estimated at 3,920,000 Euros. Of this amount, the EC will contribute 3,500,000 euros, while the Philippines will provide financial contributions of 70,000 euros and in-kind contributions worth 350,000 Euros.

This three-year program aims to assist the Philippine government enhance conditions for international trade and investment and improve the access of Filipino exports to the expanded EU market by increasing their compliance with the technical barriers to trade (TBT) and sanitary and phyto-sanitary controls (SPS) requirements.

"The Philippine government and people greatly appreciate the role of the European Union as the prime mover in advancing the TRTA as an important means, together with market access and complementary domestic policy reforms, to promote greater participation of developing countries in the global trading system," Romulo said.

De Kok for his part said that the TRTA is part of the legacy of the former EU Trade Commissioner Pascal Lamy for European support for developing countries and that this technical assistance agreement would "level the playing field" between the EU and developing countries like the Philippines.