Trade between the Philippines and the European Free Trade Area has yet to reach its full potential, although transaction volumes are growing steadily, Norwegian ambassador to the Philippines Christian Lyster said over the weekend.
Both EFTA countries — Iceland, Liechtenstein, Norway and Switzerland — and the Philippines can do more to utilize the agreement’s opportunities fully,” Lyster said in a speech at the launch of the “Doing Business in the Philippines 2025” guidebook in Makati City on January 23.
The Norwegian envoy pointed out, however, that challenges such as understanding specific tariff and regulatory requirements remain.
Lyster said Philippine exports to EFTA reached 350 million euros in 2022 and imports peaked at 433 million euros the same year.
During the first year of the FTA in 2018, Philippine exports to EFTA amounted to 230 million euros while imports were at 331 million euros, the EFTA website showed.
“While this progress is commendable, it is clear the FTA has yet to reach its full potential,” Lyster said in his speech.
“But the potential for growth in trade between Philippines and EFTA, is immense,” he said.
Statistics posted to the EFTA website showed Philippine exports to EFTA falling to 303 million euros and imports declining to 394 million euros in 2023, representing a 13 percent and 9 percent decline, respectively from their 2022 levels.
This year marks the seventh year since the EFTA-Philippines FTA came into force.
“The FTA represents a significant milestone in fostering deeper economic integration. By offering duty-free market access and reducing trade barriers, the agreement has paved the way for stronger trade relations,” Lyster said.
Norwegian companies and investors are increasingly drawn to the Philippine market in maritime, renewable energy, circular economy and seafood. “I am optimistic this trend will continue,” he said.
Lyster said maritime is a strong pillar of the Norway-Philippines relationship as approximately 25,000 Filipino seafarers serve aboard Norwegian vessels.
Lyster pledged Norway’s continued support to this partnership. “As the maritime industry embraces a green and digital future, this transition represents both challenges and exciting opportunities.”
Norway is committed to working with the Philippines “to ensure our seafarers are equipped to navigate this evolving landscape. Together, we can lead the way in sustainable and innovative shipping practices through business relations,” he said.
In 2023, Philippine exports to Norway amounted to 714.67 million kronos, up 3 percent from 694.49 million kronos in 2022.
Philippine imports from Norway 3 fell significantly by 37 percent, to 582.35 million kronos from 920.65 million kronos in 2022.