In a strategic move to enhance economic relations, President Ferdinand R. Marcos Jr. has expressed optimism for the completion of the Philippines-European Union Free Trade Agreement (PH-EU FTA) negotiations by 2027. This was announced during the 2024 European-Philippines Business Dialogue and European Investors’ Night held in Makati City.
The resumption of negotiations, jointly announced by Trade Secretary Alfredo Pascual and European Commission Executive Vice President Valdis Dombrovskis, is expected to significantly boost trade and investment flows between the two regions. The agreement is projected to increase two-way trade by approximately 6 billion euros (around PHP369.7 billion).
The PH-EU FTA is seen as a crucial step towards enhancing the trade partnership between the Philippines and the EU, focusing on areas including digital trade and intellectual property rights. The talks, which had been paused since 2017 due to concerns over human rights issues, are now back on track, signaling a positive shift in diplomatic ties.
President Marcos emphasized the broader implications of the FTA, viewing it not just as a trade agreement but as a symbol of shared visions for a future marked by prosperity and cooperation. The Philippines is keen to attract EU investments in key sectors such as renewable energy, electronics manufacturing, and e-vehicles, aligning with the country's emission reduction goals.
Furthermore, opportunities for European companies in the Philippines are expanding, particularly in agriculture, fishery processing, and information technology-business process management (IT-BPM), which offers potential in data analytics and software development.
To enhance the business environment and maximize the FTA's benefits, the Philippines has implemented several reforms, including the Retail Trade Liberalization Act, the Foreign Investment Act, and the Public Services Act. These reforms are part of a broader strategy to improve the country's infrastructure and investment climate.
President Marcos also highlighted the "Build, Better, More" program, a $161 billion initiative featuring 185 major infrastructure projects, which aims to transform the country’s infrastructure landscape and attract more public-private partnerships. Additionally, the Maharlika Investment Fund, the Philippines' first sovereign wealth fund, has been established to facilitate private-sector involvement in financing flagship projects.
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