Recent discussions surrounding a potential free trade agreement (FTA) between the Philippines and the European Union (EU) have highlighted significant opportunities for the back-office services sector. According to Chris Humphrey, executive director of the EU-ASEAN Business Council, the Philippines' English-speaking workforce positions it favorably to attract European businesses in industries such as information technology and business process management (IT-BPM).
Humphrey emphasized the Philippines' strong track record in providing back-end office solutions, including call centers and data centers. He believes that the FTA could open up avenues for EU companies to establish a presence in financial and digital services within the Philippines, leveraging its strategic location within ASEAN and its inclusion in the Regional Comprehensive Economic Partnership (RCEP).
With projections indicating substantial growth in the Philippine digital economy, the potential benefits of the FTA are significant. Google, Temasek Holdings, and Bain & Co. forecast the Philippine digital economy to grow to between $80 billion and $150 billion in gross merchandise value by 2030.
Negotiations for the FTA resumed in March, with estimates suggesting that it could lead to a substantial increase in bilateral trade, potentially amounting to 6 billion euros. This development comes at a time when the Philippines has experienced a notable rise in exports of services, particularly in the IT-BPM sector, contributing significantly to the country's gross domestic product (GDP) and job creation.
In response to these opportunities, the Philippine Economic Zone Authority (PEZA) remains optimistic about the future of the IT-BPM industry. Director General Tereso O. Panga aims to create 2.5 million new jobs by 2028, emphasizing the importance of maintaining competitiveness to attract foreign direct investment.
As discussions progress, stakeholders anticipate positive outcomes for both the Philippines and the EU, with potential implications for global trade dynamics.
#ITCNewsUpdates #BreakingNews #FreeTradeAgreement #PhilippinesEU #BackOfficeServices #DigitalEconomy #EconomicGrowth #InternationalTradeCouncil
