The Philippine Economic Zone Authority (PEZA) expressed optimism on attracting more European Union (EU) investors following the resumption of free trade agreement (FTA) negotiations.
PEZA director-general Tereso Panga said an FTA would incentivize EU companies to explore opportunities in the Philippines.
More than 200 PEZA-registered projects involve EU investments, generating significant economic benefits. European projects in the economic zones represent a cumulative investment of P300 billion, $12 billion in exports and over 50,000 jobs.
An FTA would strengthen economic ties between the Philippines and the EU, creating an attractive ecosystem for agile investors. The EU is the Philippines’ fifth-largest trading partner.
The Department of Trade and Industry (DTI) and the European Commission announced on March 18, 2024 the resumption of FTA negotiations.
The PH-EU FTA aims to provide better access for goods, services, and investments compared to the current Generalized System of Preferences Plus (GSP+) scheme.
The FTA would also promote higher standards and competitiveness, fostering sustainable development in the Philippines.
The Philippines enjoyed zero tariffs on two-thirds of its exports to the EU since 2014 under the GSP+. The government is seeking a four-year extension of this benefit, expiring at the end of 2024.
PEZA said the FTA and GSP+ extension would attract diverse EU investments across various industries, catering to both domestic and export markets, and strengthen the Philippines’ bid as a prime location for EU companies seeking to enter the ASEAN and Asia-Pacific markets.
PEZA also announced its first-ever investment mission to Madrid, Spain to showcase the advantages of investing in Philippine economic zones.
The event attracted Spanish companies from shipbuilding, agro-industrial, pharmaceutical and other sectors.
Panga identified shipbuilding and agro-industry as promising sectors for Spanish offshoring in the Philippines.
PEZA aims to attract investments in higher-value products and technologies like electronics, automotive, and renewable energy, diversifying trade beyond current agricultural products.
After the successful trade mission to Germany and Czech Republic led by President Ferdinand Marcos Jr., PEZA is planning an investment mission to Germany in collaboration with the German-Philippine Chamber of Commerce and Industry (GPCCI).
The mission aims to capitalize on German companies’ positive outlook on the Philippines’ business climate.
PEZA said it remains committed to removing investment barriers and aggressively promoting the Philippines as an attractive investment destination within the region.