The Philippines and the European Union (EU) will tackle eight new and important elements of their proposed free trade agreement (FTA) in Brussels, Belgium next June, the Department of Trade and Industry (DTI) said.
These elements emerged during the second round of negotiations in Manila on Feb. 10 to 14, DTI Undersecretary Allan Gepty said.
In a text message to Malaya Business Insight late Monday, the Trade official identified the new elements as digital trade, energy and raw materials, good regulatory practices, government procurement, state-owned enterprises, sustainable food systems, micro, small and medium enterprises, and trade and sustainable development.
Further discussions on the newly emerged elements will continue when the parties meet for the third round in Brussels, Belgium in June.
“We are working hard to fast track the negotiations and hopefully conclude the same before 2027,” Gepty said.
The second round of negotiations was constructive and productive, Gepty said in his text message.
“We were able to sustain the momentum of our first round of negotiation last October 2024,” he added.
Both parties view the agreement as a stable platform on which to make the economic relations between the Philippines and the EU stronger.
Gepty said the EU is an important and major trade and investment partner of the Philippines.
“There is still a lot of unrealized potential between the two economies,” he said.
On Oct. 3, 2024, Gepty told Malaya Business Insight the Philippines wanted to explore opportunities surrounding the $8.3 billion in potential exports to the EU under the free trade agreement.
The Philippines is seeking to maintain its competitive advantage especially when it comes to key Philippine products such as tuna, coconut, cacao, pineapples, semiconductors, and electronics.
“We also want to create opportunities for our investors, service providers, and professionals in a business environment that promotes good governance and sustainable development,” Gepty said.
This is one of the key FTAs that the Philippines wants to conclude in attaining a more balanced trade strategy and healthier economic position.
“We are guided by our PDP (Philippine Development Plan) 2023- to 2028, that is, to advance purposive, assertive, and forward-looking FTAs that will expand economic space and increase our participation in global supply chains,” Gepty said.
Data from the EU website showed total trade in goods between the EU and the Philippines amounted to 16.1 billion euros in 2023.
That same year, the EU was the Philippines’ fourth-largest trading partner, accounting for 8.1 percent of the country’s total trade.
On the other hand, the Philippines was the EU’s 42nd largest trading partner globally, accounting for 0.3 percent of the Union’s total trade.
EU exports to the Philippines consist mainly of machinery, transport equipment, chemicals, and food products, while the Philippines’ ships office and telecommunications equipment, machinery, food products, and optical and photographic instruments to the EU.
