The European Chamber of Commerce of the Philippines (ECCP) has laid down its policy reform wish list, highlighting priorities such as boosting trade and investments, enhancing the business environment, promoting sustainability and advancing digitalization and connectivity.
“More needs to be done despite the country’s resilience and efforts to have a more competitive business environment,” ECCP president Paolo Duarte said during the launch of the “Doing Business in the Philippines” publication in Makati City yesterday.
Duarte stressed the need to further cut the bureaucratic red tape and other barriers to investment in the Philippines, citing findings of the Chamber’s 2024 Business Sentiment Survey released in December.
Investment barriers The ECCP survey said 53 percent of respondents reported an improvement in the ease of doing business in the Philippines, but 75 percent took note of significant barriers to investment and processes, affecting the overall conduct of business in the country.
On trade and investments, Duarte said ECCP members eagerly anticipate the commencement of the second round of negotiations for the European-Philippines free trade agreement (FTA) in Manila next month.
“These negotiations will pave the way for enhanced cooperation between Europe and the Philippines,” he said.
Sustainability, digitalization
On the sustainability agenda, Duarte said the chamber emphasizes the integration of sustainability practices aligning with the country’s participation in the Green Economy Program and the European Green Deal.
On digitalization, Duarte said ECCP is a staunch supporter of digital payments as well as open and wider access in the field of data transmission, among other initiatives.
“The Chamber advocates for policies that ensure secure, sustainable, and diversified supply chains for critical raw materials in advancing clean energy, digital technologies, and other key sectors.”
The chamber also recognizes the strategic importance of critical raw materials and advocates policies that support their secure and sustainable supply chains, Duarte said.
In the 2024 ECCP survey, 44 percent of respondents found customs procedures in the Philippines to be acceptable but pressed for ways to improve the process.
The survey showed 34 percent considered these procedures overly burdensome while 6 percent viewed customs procedures in the country as speedy and efficient.
“These findings highlight the need for further reforms and streamlining of customs processes to enhance efficiency, reduce unnecessary costs, and facilitate both trade and investment,” ECCP said in a report that went with survey results.
Regulatory clarity
Asked to identify the most significant obstacles to investment, trade, and doing business in the Philippines, a substantial 73 percent of respondents said the lack of regulatory clarity and consistency posed a major hurdle. These factors can hinder business operations, increase compliance costs, create confusion, and discourage investment, the survey said.
About 60 percent of respondents pointed to complex taxation regimes and complicated customs procedures as highly significant barriers.
These issues can lead to shipment delays, increased logistics and taxation costs, and excessive bureaucracy, hindering efficient and transparent processes,” the ECCP said.
The ECCP has over 800 members representing a wide array of industries, ranging from consumer and industrial goods, electronics and information technology, textile and fashion to food production and processing.
The EU is the fourth largest trading partner of the Philippines with an 11 percent share of Philippine exports and 6 percent of imports, but Manila ranks only the sixth economic partner of the EU among the 10-member Association of Southeast Asian Nations, Duarte said.
Data from the EU commission showed total trade in goods between the EU and the Philippines amounted to 16.1 billion euros in 2023, slightly lower than the 18.4 billion euros in 2022.