In a recent development, Finance Secretary Ralph G. Recto has put forward the idea of exploring the potential for the Philippines to establish a free trade agreement with the United Kingdom (UK).
This proposition emerged during Recto’s meeting with UK Prime Minister’s Trade Envoy to the Philippines Richard Graham and UK Ambassador to the Philippines Laure Beaufils, as reported by the Department of Finance (DOF). According to a Facebook post by the DOF, “Secretary Recto discussed the possibility of the country entering into a free trade agreement with the UK, potentially through the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).”
The CPTPP stands as a significant free trade agreement involving 11 other nations across the Indo-Pacific region, including Canada, Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.
Collectively, the economies of these 11 member nations contribute to approximately 13.4 percent of the global gross domestic product, amounting to around $13.5 trillion. This makes the CPTPP one of the largest free-trade areas globally in terms of size.
In the Southeast Asian context, the UK has strong trade and investment connections primarily with Singapore and Malaysia. Notably, trade in goods and services between Manila and London amounted to £3.0 billion in the four quarters leading up to September last year, marking a 19 percent increase compared to the corresponding period in 2022.
The proposition for a free trade agreement between the Philippines and the UK reflects a mutual interest in fostering stronger economic ties and exploring avenues for enhanced collaboration in trade and investment.