The Philippines and the European Union (EU) on Monday agreed to revitalize trade and relaunch free trade agreements (FTA) talks.
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President Ferdinand Romualdez Marcos said in a speech that he discussed with the EU chief "economic relations with particular focus on revitalizing trade" between the two regions.
Marcos welcomed resuming negotiations for Philippine-EU free trade, adding that his administration would work with EU experts to achieve the bilateral FTA, the first round of which took place in 2016 in the Philippines.
The EU and the Philippines already have well-established trade relations, with clear potential for an even closer relationship:
• trade in goods was worth over 18.4 billion euros in 2022, while trade in services was worth 4.7 billion euros in 2021;
• the EU is Philippines's 4th largest trade partner;
• the Philippines, the 5th largest economy in the ASEAN region, is the EU's 7th most important trading partner in the region (and 41st worldwide);
• the EU is one of the largest investors in the Philippines, with the EU's foreign direct investment stock in the Philippines reaching 13.7 billion euros in 2021.
The Philippines currently enjoy trade preferences under the EU's Generalised Scheme of Preferences + (GSP+), a special incentive arrangement for sustainable development and good governance which grants duty free access to the EU market for two-thirds of tariff lines.
This enhanced access is conditional on the Philippines implementing a range of international conventions covering issues such as human and labour rights, good governance, and environmental protection.
The EU will continue to monitor the Philippines' compliance with its international obligations in these areas and pursue its ongoing dialogue to encourage further improvement.
The Philippines is among the fastest growing emerging economies in the world, recording the 2nd highest economic growth in ASEAN with 7.6% GDP growth in 2022.
This high economic growth exemplifies a promising growth trajectory and increased economic potential for the Philippines as an important trading partner.
Moreover, the Philippines has major reserves of critical raw materials, including nickel, copper, and chromite, which are vital for the manufacture of green technologies.
Combined with the Philippines' renewed efforts to harvest its renewable energy potential and recent liberalisation for foreign investors in the sector, the Philippines is an important partner in the green transition.
The EU and the Philippines first launched negotiations for an FTA in 2015. The last negotiating round took place in 2017 and negotiations have since been on hold. On 30 June 2022, the new administration assumed office and has shown willingness to engage with the EU on key issues of importance. ■