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The Philippines and European Union may start “scoping” talks in September to prepare for the restart of their free trade agreement negotiations
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Formal FTA negotiations could begin in early 2024 if the scoping exercise succeeds
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EU aims for a “comprehensive FTA” with the Philippines that includes ambitious market access commitments, swift and effective sanitary and phyto-sanitary procedures and protection of intellectual property rights, including geographical indications
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European Commission President Ursula von der Leyen cited the need for scoping after her discussions with President Ferdinand Marcos, Jr. during her official visit to Manila on July 31-August 1
The Philippines and the European Union may start initial discussions on a free trade agreement in September, possibly paving the way for formal negotiations to start as early next year, the Department of Trade and Industry (DTI) said.
“We expect that these discussions will start with a scoping exercise. And our expectation is that we can commence this right after the usual summer holiday in Europe, maybe in early September,” Trade Secretary Alfredo Pascual said in a press briefing on August 1.
After about six years in limbo, the EU and the Philippines officially agreed to resume FTA negotiations that would take their long-standing bilateral partnership to another level through strengthened economic ties, increased trade and greater cooperation, both sides said.
The last formal talks were held in Brussels, Belgium in 2016 and in Cebu in 2017.
In a statement, the EU said “[the EU and the Philippines] will shortly kick off a bilateral ‘scoping process’ to assess to which extent they share a mutual understanding on the future FTA.”
The EU said it aims for a “comprehensive FTA” with the Philippines that includes ambitious market access commitments, swift and effective sanitary and phyto-sanitary procedures, as well as the protection of intellectual property rights, including geographical indications.
Sustainability will also be a major part of the trade deal, with robust and enforceable disciplines on trade and sustainable development (TSD), the EU said.
“The Philippines is a key partner for us in the Indo-Pacific region and, with the launch of this scoping process, we are paving the way to taking our partnership to the next level,” European Commission President Ursula von der Leyen said on July 31. Von der Leyen was in the Philippines for an official two-day visit that ended on August 1.
EU Ambassador to the Philippines Luc Veron said on Twitter that the FTA would “boost trade and foster greater cooperation” between the two economies.
The EU is the Philippines’ fourth-largest trading partner by regional bloc, with bilateral trade in goods totaling €18.4 billion, or P1.11 trillion, in 2022, according to the EC website.
The regional bloc is one of the largest investors in the Philippines, with EU’s foreign direct investments in the Philippines reaching €13.7 billion or P824.4 billion in 2021.
The Philippines is a beneficiary of EU’s preferential trading scheme for developing countries, the Generalised Scheme of Preferences + (GSP+), a special incentive arrangement for sustainable development and good governance that grants the Philippine duty-free access to the EU market for two-thirds of its tariff lines.
