Philippine firms urged to tap European free trade deal

MANILA, Philippines — Philippine firms are urged to utilize the free trade agreement (FTA) with the European Free Trade Association (EFTA) to take advantage of the benefits of the deal.

In a virtual briefing, Swiss Ambassador to the Philippines Alain Gaschen encouraged Philippine firms to register to trade and export with EFTA countries Iceland, Liechtenstein, Norway and Switzerland.

He said the utilization rate of the FTA between the Philippines and EFTA is still low both ways.

“There is still a potential for savings for all involved,” he said.

The Philippines-EFTA FTA entered into force in June 2018.

Through the FTA, Philippine exporters can benefit through lower or zero tariffs for goods entering the EFTA states, liberal rules of origin, and trade-facilitating measures.

Gaschen said after the FTA took effect, the Philippines registered a trade surplus, reversing the trade deficit with EFTA.

He said exports of seafood from Nordic countries to the Philippines, meanwhile, registered a 40 percent increase.

Given the potential to benefit from the FTA, he said efforts are being undertaken to promote the instrument.

“We have been looking into different products that can be good to export to Switzerland and also some sectors to export to the Philippines,” he said.

He said there is potential for those engaged in the agriculture sector.

He said they are also working with the Department of Trade and Industry and Department of Agriculture to fine-tune the instrument.

Apart from continued efforts to promote utilization of the FTA, he said there would also be focus on encouraging sustainable business practices.

“We want to promote sustainable and responsible business because I think this is relevant in the future and the crisis has shown both consumers and regulators and also the workforce are now demanding more responsibility and more sustainability and this will be one of our major focus this year,” he said.