Business groups lauded the resumption of the EU-Philippines free trade agreement (FTA) negotiations.
“We are encouraged by the recent developments surrounding the resumption of the EU-PH Free Trade Agreement, particularly highlighted by President Marcos’ remarkably successful visit to Germany last week—a visit that included a business forum we had the honor of co-organizing,“ said German-Philippine Chamber of Commerce and Industry Inc. (GPCCI) president Stefan Schmitz.
GPCCI said the EU-PH FTA presents a significant opportunity to further enhance the interests of German businesses, as demonstrated by their keen enthusiasm observed during the business forum.
The European Chamber of Commerce of the Philippines (ECCP) underscored the urgency to conclude the FTA before the end of the Marcos administration in 2028 considering the impending expiration of the EU Generalized Scheme of Preferences Plus (GSP+) in 2027.
The FTA is expected to grow bilateral trade by an additional 6 billion euros. “Strengthening economic engagement with the EU remains a priority for the Philippines. As one of the country’s largest trading partners and sources of investment, we have worked diligently to enhance our ties with the EU, including high-level exchanges over the past two years between President Ferdinand Marcos Jr. and EU Commission President Ursula Von der Leyen,” said Department of Trade and Industry Secretary Alfredo Pascual.
“We aim for an ambitious, balanced and comprehensive FTA with the EU. Our approach is guided by the Philippine Development Plan 2023-2028, directing us to advance purposive, assertive, and forward-looking FTAs,” said Pascual.
The proposed FTA aims to provide enhanced market access for goods, services and investments, going beyond the benefits of the EU’s Generalized System of Preferences Plus (GSP+). By committing to rules and higher standards, the FTA will enhance competitiveness and foster sustainable, inclusive growth and development in the Philippines.
“The conditions are right to take our trade relations to the next level. Trade between the EU and the Philippines is already strong and has been growing at an impressive pace over the past decade,” said European Commission executive vice-president Valdis Dombrovskis.
Dombrovskis noted the Philippines’ importance in diversifying the EU’s sources of critical minerals, adding this perspective to the FTA discussions alongside the need for specific agricultural and fisheries products.
“The Philippines is also a significant producer of critical raw materials like nickel, copper and chromite, all vital for the green transition,” Dombrovskis said. “A deal with the Philippines will help strengthen our supply chains in these critical minerals at a time of pressure on global supply chains.”
The EU said the proposed FTA would not only support bilateral trade but also the Philippines’ ambition to be a leader in the green and digital transition.