MANILA, Philippines — The Marcos Jr. administration was keen on the resumption of free trade talks with the European Union, aided by some prodding from business groups.
That agenda was top of mind for the Department of Trade and Industry as they met with the European Commission on their trip to Belgium.
For context, negotiations began in 2015. The second round of talks were held in November 2017 but was put on hold in November 2020.
Trade Sec. Alfredo Pascual echoed calls from business groups, such as the EU-ASEAN Business Council, European Chamber of Commerce of the Philippines, and the German-Philippine Chamber of Commerce and Industry, among others, to resume negotiations.
Sweden’s foreign trade minister told journalists in May that the negotiations for this free trade agreement need to restart.
A free trade agreement with the EU could bolster the Philippines’ foreign trade gains. Government data showed that the European Union has been the country’s fifth largest trading partner in 2022, yielding €15.23 billion in total trade.
Pascual reiterated that a free trade agreement between the Philippines and the EU will need to be put in place before the country loses its GSP+ status as economic growth continues.
“With the country’s positive trajectory towards reaching upper-middle income status, it is high time for the Philippines and the EU to resume FTA negotiations,” the DTI chief said.
As it is, the country is already party to a number of free trade agreements and frameworks. The Marcos Jr. administration ratified the country’s participation in the China-backed Regional Comprehensive Economic Partnership.
The Philippines partnered with 13 other nations in the US-led Indo-Pacific Economic Framework.
Within the pipeline, the Philippines is set to sign a bilateral free trade agreement with Korea. The country is also pursuing a preferential free trade agreement with India, a separate one with the United Arab Emirates, and an FTA with Canada facilitated by the ASEAN. — Ramon Royandoyan