DTI to assess coverage of possible Phl-EU FTA

MANILA, Philippines - Scoping exercises for a possible Free Trade Agreement (FTA) between the Philippines and the European Union (EU) will be held this month to determine its coverage, according to Trade Undersecretary Adrian Cristobal Jr.

The Philippines and the EU are yet to sign a Partnership and Cooperation Agreement (PCA), a document that will be the basis for formal negotiations.

“With formal negotiations, we do not expect anything soon. At the earliest, it will be conducted in the fourth quarter or sometime next year,” Cristobal said.

He said the Trade department has commissioned an impact study from the Philippine Institute of Development Studies late last year, the results of which are expected to be released in June.

“We hope to obtain findings in the middle of the year and we hope to conduct a more in-depth sectoral consultation. We will also get our legislators on board on the constitutional process,” Cristobal said.

“The parts of the FTA are standard already but it is no longer just on the trade of goods and services. There will be a chapter on environment and trade facilitation,” he said.

The European Union (EU) earlier expressed openness to engage in discussions with the Philippine government about a possible FTA when the country is ready. 

EU Ambassador Guy Ledoux said the regional bloc supports the Philippine government’s commitment to transparency through the conduct of consultations with stakeholders.

He pointed out that foreign direct investments and trade would pick up when the investment climate is conducive, as characterized by protection of intellectual property rights through legal certainty and efficient courts, a level playing field for companies, transparent rules and procedures for public procurement, legal certainty and protection for domestic and for foreign direct investment and conducive customs procedure.

Ledoux said a level playing field for companies through effective, transparent competition policies and legislation would attract innovative businesses.

Transparent rules and procedures for public procurement ensures that tenders and contracts are in line with international best practice and provide best value for tax payers’ money invested in publicly procured goods and services.

Conducive customs procedure, he said, would ensure the smooth flow of goods.

In a related development, Cristobal said the comprehensive review of the Japan-Philippines Economic Partnership Agreement (JPEPA) is expected to be conducted in June.

“We are scheduling the start of the review second semester of this year. It was postponed last year on the request of Japan. We are targeting June,” he said.

The Philippines aims to be able to send more nurses to Japan and to lower tariffs on over a thousand agricultural products.