Manila Times - 17 January 2025
PH-EU trade talks to resume February
By Janine Alexis Miguel
The European Union and the Philippines will begin the second round of negotiations for a free trade agreement (FTA) next month, an envoy said on Thursday.
"These discussions started with a very positive momentum, and I am confident that this positive, very positive momentum will be kept in order for both sides ... to deliver well and to deliver fast," EU Ambassador Massimo Santoro said in a briefing for European chambers in the country.
The trade discussions will be held in Manila after an initial round in October 2024. The proposed FTA aims to address gaps in bilateral trade, which Santoro said had yet to achieve its full potential.
"We can already say that our bilateral exchanges are not at the level of our mutual ambitions. They are good, but they are not yet at the right level," he said.
Santoro noted that while the EU was the Philippines' fourth-largest trading partner, the country ranked just sixth among the bloc's Asean economic partners.
"We can do more, considering the potential and the size of the Philippine market and the resources of the country," he said.
The EU currently accounts for 11 percent of Philippine exports and 6 percent of the latter's imports that mostly comprise merchandise trade. It is also one of the country's biggest sources of foreign investments.
The 27-nation trading bloc has pointed to untapped potentials in services, technology and manufacturing. Trade Undersecretary and lead Philippine negotiator Allan Gepty, meanwhile, has said that areas like innovation, digital trade and energy also should be explored.
The Department of Trade and Industry is aiming to finalize the FTA talks by 2026. Negotiations had been put on hold in 2017 after the EU raised concerns over alleged rights abuses by the government of then-president Rodrigo Duterte.
Santoro said the EU would continue to closely monitor the Philippines from a trade and investment perspective, including the political situation, ease of doing business and overall investment conditions.
