MANILA, Philippines — The Department of Trade and Industry (DTI) is upbeat talks for a free trade agreement (FTA) with the European Union (EU) could be concluded before the 2027 target.
“The Philippines aims to finalize these trade talks by 2027. But I could be more optimistic,” Trade Secretary Alfredo Pascual said during the European-Philippine Business Dialogue held recently.
Pascual said negotiations for the Philippine-European (FTA) took only a year to complete. “So we have a model to follow,” he said.
However, Pascual told reporters that this does not necessarily mean that the negotiations for the Philippines-EU FTA would only take one year.
“We hope to be able to align the FTA to our goals of achieving the upper middle income status and moving behind the EU Generalized Scheme of Preference (GSP) framework. We hope to be able to graduate into the FTA,” he said.
At present, the Philippines is a beneficiary of the EU GSP Plus, which allows the duty-free entry of 6,274 products to the bloc.
The EU GSP Plus benefit can only be enjoyed by countries classified as below upper middle income by the World Bank.
Earlier, National Economic and Development Authority Secretary Arsenio Balisacan said the Philippines is still on track of becoming an upper middle income economy by 2025.
Pascual said the Philippines-EU FTA, once in place, is expected to enhance and broaden the partnership.
He said the chief negotiators’ meeting scheduled in June can lay the groundwork for the upcoming negotiation rounds.
Trade Undersecretary Allan Gepty told reporters last week, the third round of negotiations for the Philippines-EU FTA are expected to take place in October.
The first round of negotiations for the Philippines-EU FTA was conducted in 2016.