Manila, Philippines — The resumption of negotiations for the Philippines-European Union Free Trade Agreement (PH-EU FTA) was announced on March 18 by Secretary Fred Pascual of the Department of Trade and Industry (DTI) and European Commission Executive Vice President and Trade Commissioner Valdis Dombrovskis. The declaration marks further economic ties and opens common benefits for the Philippines and the EU.
“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,” stated by Secretary Pascual.
With total trade of USD 16.16 billion (or 8.1% of PH total trade), the EU emerged as the country’s fifth largest trading partner in 2023, the sixth export market with USD 8.37 billion, and the sixth import supplier with USD 7.79 billion. Comparatively, the EU has been a significant foreign venture ally, with all foreign direct investments arriving at USD 29.16 million in 2022 and USD 63.99 billion in 2023.
“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,” EVP Dombrovskis declared.
An exhaustive stocktaking exercise led by the Division and the European Commission, from September to December 2023 placed the basis for the resumption of the dealings. Recognizing the shifting global economic landscape since the first two negotiating rounds in 2016 and 2017, the exercise sought to comprehend respective ambitions and investigate potential FTA elements.
“As we look ahead, the Philippines is committed to deepening economic ties and fostering cooperation with the EU across emerging trade areas like critical raw materials, climate change, environmental sustainability, labor, and good governance,” Pascual stated.
The resumption of the FTA negotiations coincides with the festivity of 60 years of diplomatic relations between the Philippines and the EU.
Source: Official Press Release from DTI