A FREE trade agreement with the European Union (EU) could increase high-quality foreign direct investments, aligning with efforts to improve the investment climate, according to the European Chamber of Commerce of the Philippines (ECCP).
ECCP in a statement yesterday said it welcomes the resumption of the FTA negotiations between the Philippines and the EU. Negotiations started yesterday and will conclude on Friday in Brussels, Belgium.
ECCP said while EU holds substantial investment potential for the Philippines especially as it is a major foreign direct investor in Asean, “the country currently attracts a small portion of this, leaving room for growth. “
ECCP cited a study by the International Trade Centre which said the Philippines can increase its export to the EU by $8.3 billion.
Key sectors poised for growth under the FTA include agriculture, garments, digital trade, renewable energy, and minerals.
The Confederation of Wearable Exporters of the Philippines estimates the FTA could generate between 120,000 and 250,000 new jobs within the first few years of its implementation. The Philippines’ information technology-business process management industry and electronics sector are also expected to benefit from expanded access to EU markets.
The Department of Trade and Industry, which targets to conclude negotiations by 2027, has noted the need to use this three-year window for the FTA’s completion.
This as , as the Philippines may lose its eligibility to the Generalized Scheme of Preferences Plus (GSP+) when the country reaches an upper-middle income status in a few years.
Losing GSP+ could affect key exports. Currently, 23 to 28 percent of Philippine exports to the EU benefit from GSP+.
