‘Philippines-European Union free trade agreement to deliver vital trade boost’

MANILA, Philippines — Trade between the Philippines and the European Union is currently below its potential, but a free trade agreement (FTA) is expected to significantly boost trade, according to EUAmbassador Massimo Santoro. 

Speaking at the joint economic briefing organized by European chambers, Santoro said the bloc considers the Philippines as a crucial partner in the Indo-Pacific region and recognizes the country’s significant economic potential. 

“Trade and investment figures for the whole of 2024 have not yet been published, but we can already say that our bilateral exchanges can better match the level of our mutual ambitions,” Santoro said. 

While the EU remains the fourth largest trading partner of the Philippines with a share of 11 percent of Philippine exports and  six percent of imports, he said the Philippines is only the sixth economic partner of the EU among Southeast Asian countries.

“We can do more, considering the potential and the size of the Philippine market and the resources of the country,” he said. 

Santoro said the FTA being negotiated by the EU and the Philippines is aimed at raising the parties’ bilateral economic ties to a new level. 

“Through the FTA, we aim to facilitate not only merchandise trade, but also trade in services and to create more incentives for investment,” he said. 

“We believe that an FTA can serve as a catalyst of economic growth, benefiting businesses, workers and consumers on both sides,” Santoro said. 

Last October, the EU and the Philippines resumed stalled talks for an FTA. 

Prior to that, there were two rounds of FTA negotiations, with the first conducted in 2016 and the second in 2017.

Santoro said the next round of FTA talks between the EU and the Philippines would take place on Feb. 10 to 14 in Manila. 

As FTA negotiations are underway, he said the EU would continue working closely with European businesses and the Philippines in efforts to promote stronger ties.