Human rights and trade

Trade negotiations may be likened to back and forth negotiations between a long married couple trying to fix their issues after getting stuck in a stalemate of sorts.

They both want to save the marriage and move forward but in order to do that, they must first resolve sources of conflicts and show concrete steps that each is actually trying to change for the better.

Perhaps, this is what happened now that the Philippines and the European Union have agreed to resume negotiations for a free trade agreement (FTA), which is expected to bring economic benefits to both parties.

How did we get here? Why did the EU finally decide to resume talks under President Marcos’ administration?

No less than EU Executive Vice President and European Commissioner for Trade Valdis Dombrovskis said that talks were suspended for years mainly due to concerns with Duterte’s human rights record, including the so-called war on drugs and related human rights abuses.

“Now we see (the) new administration working to improve (the) human rights situation,” Dombrovskis said in a meeting in Brussels with journalists from third countries, days after both the EU and the Philippines announced the resumption of talks.

Indeed, the human rights situation under the Duterte administration potentially caused us a new economic deal. If not for the war on drugs, we might already have a deal by now.

Dombrovskis, in the March 18 statement announcing the resumption of FTA negotiations, hinted that they would continue to keep a close watch on further improvements on the human rights situation.

“We would also encourage further progress on the long-standing issues of EU concern related to human rights and labor rights.”

Just the same, so much time had been wasted because of our human rights problem.

The EU and the Philippines first launched negotiations for an FTA in 2015. The last round took place back in 2017, after which no further rounds were scheduled due to the EU’s concerns over policies of the former government of the Philippines, the EU’s statement said.

“We then paused talks, as we are always firm in our conviction that our trade relations cannot be negotiated in a vacuum. Our trade relations must be based on respect for common values and fundamental conventions.

“So, we warmly welcome the positive change of direction that your government has induced since it took office in 2022,” Dombrovskis said in the statement.

Moving forward

The EU and our other trade partners, however, must indeed keep a close watch on the human rights situation under the Marcos administration. Human rights organizations are saying that the killings continue and some 600 have been killed.

For its part, the EU said that indeed, continued progress remains important even as it welcomed progress made on some specific issues, notably on the so-called “war on drugs” policies, “moving toward prevention and rehabilitation.”

It also acknowledged progress on the case of former justice secretary Leila de Lima and said that it looks forward to the resolution of pending human rights cases pursued “with the highest standards of due process.”

The FTA

As for the FTA itself, it is no doubt an important deal which could enable the Philippines to be a major market for EU industry.

According to the EU, trade in goods between the two parties was worth over 18.4-billion euros in 2022, while trade in services was worth 4.7-billion euros in 2021. The EU is the Philippines’ fourth largest trading partner.

“And we are one of the largest investors in the Philippines [EU’s foreign direct investment stock in the Philippines reaching 13.7-billion euros in 2021].

“The FTA is projected to increase trade by up to 6-billion euros,” the EU also said.

Green agenda

At the same time, Dombrovskis said, the agreement is about more than just making it easier to ship boxes of goods back and forth.

“For one thing, our trade agenda must also support the green and digital transitions, which are areas where the Philippines has consistently voiced strong ambitions to be at the forefront. This FTA will allow for high standards for trade and sustainable development,” he also said.

In the meeting in Brussels with journalists from third countries, Dombrovskis said that “trade can and should be a driver for accelerating a fair transition to a low-carbon and climate resilient economy.”

‘More laughing, less screaming’

The talks will begin sometime this year and the groundwork will start with the technical people, so it is likely that there will be “no egos and no personalities,” says a source privy to trade deals.

Both parties will agree on how many negotiating rounds there will be. Usually, it takes three to four rounds and the venue of negotiations will be in closed-door meeting rooms in hotels, alternating between the Philippines and Belgium.

The mood is usually business-like and diplomatic.

“There’s more laughing than screaming,” said the source.

For sure, this FTA holds a lot of promise.

The Marcos administration should be credited with the resumption of the talks but it cannot pop the champagne just yet. It must continuously address the human rights situation because at any point, the EU can again stop the negotiations.

In all, I hope that indeed our Philippine trade negotiators will make sure that we get a good deal and that we will be able to build a stronger and climate resilient economy.

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Email: [email protected]. Follow her on X, formerly Twitter @eyesgonzales. Column archives at EyesWideOpen (Iris Gonzales) on Facebook.