The Department of Trade and Industry (DTI) said it is looking forward to finalizing negotiations for a free trade agreement (FTA) with the European Union by 2027.
The DTI said the resumption of the Philippines-EU FTA discussions is a commitment to resilience and cooperation to fortify economic ties and benefit millions.
Trade Secretary Alfredo Pascual expressed his appreciation towards the EU for its renewed confidence in the Philippines.
He said this development aligns with the Marcos administration’s clear trade and investment strategy, positioning the Philippines as a prime destination of foreign investments, particularly those focused on combating climate change and adhering to environmental, social and governance (ESG) standards.
The Philippines has benefitted from the EU’s Generalized Scheme of Preferences Plus (GSP+) since 2014. The trading scheme allows more than 6,000 tariff lines from the Philippines to enter the EU tariff-free.
Based on a policy study conducted by the International Trade Center under the ARISE+ program, the Philippines saved P57.4 billion in tariffs through the GSP scheme between 2015 and 2021. Exports to the EU also doubled fromP320 billion to P629 billion since the inception of the GSP+.
EU executive vice-president and commissioner for trade Valdis Dombrovskis said the EU anticipates a “prosperous new partnership” with the Philippines.
According to an EU-commissioned sustainability impact assessment, the Philippines stands to gain significant economic benefits from the partnership.
The study forecasts an increase in the nation’s overall welfare by up to P78.1 billion, with a potential GDP growth ranging between P88.9 billion and P119.8 billion, underscoring the economic advantages of continued collaboration.