The Philippines and France expressed full commitment to deepening economic cooperation, trade and investment during the 10th Joint Economic Committee meeting on June 20, 2023.
French Minister Delegate for Foreign Trade, Economic Attractiveness and French Nationals Abroad Olivier Becht handed over three letters of intent to the visiting Philippine trade delegation to expand bilateral cooperation on several areas of interests and follow-up on commitments on trade and investments deliverables on air transport service, infrastructure, agriculture and energy.
Among the agreements signed during the JEC are two separate memoranda of understanding between the National Power Corp. and the Mindanao Development Authority with Hydrogène de France to facilitate the development of renewable energy and hydrogen power plants in the Philippines, the first project of its kind to be undertaken in Southeast Asia.
Both countries agreed to step up cooperation on ongoing projects such as the commitment of OCEA, a French company, to invest P1.5 billion in a shipyard facility in the Philippines; a technical cooperation on maritime safety through the placement of a French marine expert in Manila; and cooperation on nuclear energy through an upcoming study mission.
The Philippines also expressed its continued interest to explore space technology cooperation with the Centre National D’Etudes Spatiales, the French Space Agency.
On aviation, the Civil Aviation Authority of the Philippines reaffirmed the Philippines’ commitment to the MOU signed with Direction Générale de l’Aviation Civile or the French Civil Aviation Authority, as both sides welcomed the ongoing discussion with Thales on air traffic management.
Discussions on transportation and related matters touched on the existing ventures of French companies, such as Colas Rail, Alstom, Thales and Egis on the Metro Manila Subway and North-South Commuter Railway projects, as well as the status of projects on bus rapid transit, train signaling systems and urban cable car.
France offered to support the development of the Philippines’ dairy industry, which includes a possible deployment of a French dairy expert to the Philippines. France also shared best practices to containment measures of the highly pathogenic Avian Influenza through zoning and vaccination.
The Philippines and France are both open to possible future partnerships in electronics, in support of the existing linkages such as the MOU between the ACSIEL Alliance Electronique and Semiconductor & Electronics Industries in the Philippines.
Another area for potential collaboration is nickel processing, with the Philippines’ rich nickel deposits and the French territory of New Caledonia as a major supplier of processed nickel for battery manufacturers with significant nickel resources. France, a global leader in electric vehicle manufacturing, can engage the Philippines for a deeper cooperation on sustainable minerals processing.
Total trade between the Philippines and France grew 23 percent to $1.8 billion in 2022 from $1.5 billion in 2021. Philippine exports to France were up by nearly 50 percent to $756 million from $514 million.
Top Philippine exports included electronics products, spectacle lenses, parts of airplanes, desiccated coconuts and semiconductor devices. French exports increased 9 percent to $1 billion in 2022 from $990 million in 2021. Airplanes, medicaments, electronics, handbags, and meat products top the list of preferred export products from France. France continues to be one Philippines’ top sources of foreign investments from the EU, contributing P6.7 billion in investments from 2017 to 2022, with stakes in manufacturing; electricity, gas, steam, and air conditioning, supply; wholesale and retail trade; transportation and storage; information and communication; and administrative and support service activities.