Phl eyes resumption of FTA talks with EU

The Department of Trade and Industry (DTI) has renewed its call for the resumption of talks for a free trade agreement (FTA) with the European Union to promote stronger trade and investment ties.

In a statement, the DTI said Trade Secretary Alfredo Pascual conveyed the country’s long-term interest to resume the FTA negotiations during his meeting with the members of the European Parliament SubCommittee on Human Rights.

“With the positive developments in our relations and growing economic performance of the country, these all merit further consideration of elevating Philippine-EU relations through an FTA. DTI proposes, with the Parliament’s support, the continuation of the FTA negotiations, as the FTA will provide a more stable and permanent platform for our trade and investment,” he said.

There have been two rounds of negotiations for the FTA between the Philippines and the EU, with the first one held in May 2016 and the last in February 2017.

Pascual briefed the EU delegation on the recent economic developments in the country, including the Senate concurrence on the ratification of the Regional Comprehensive Economic Partnership Agreement, as well as reforms to make the country more attractive to foreign investors, such as the passage of amendments to the Public Service Act and Retail Trade Liberalization Act and the opening of renewable energy projects to 100 percent foreign equity.

During the same event, the EU Generalized Scheme of Preferences Plus (GSP+), which enables beneficiary countries to export 6,274 products to the bloc at zero tariff, was also discussed.

“This preferential scheme benefited not just local industries, but even foreign investors doing business in the country. This scheme helped us in transforming lives and communities in the Philippines consistent with our efforts to promote socioeconomic development,” Pascual said.

The Philippines is the only beneficiary country in Southeast Asia of the EU GSP+.

Since the Philippines’ successful application to the EU GSP+ in 2014, the country has seen an increase in exports to the bloc.

In 2021, the country’s total exports to the EU reached 7.77 billion euros, of which 26 percent or 2.03 billion euros availed of GSP+ preferences.

The country’s GSP+ utilization rose to an all-time high of 76 percent in 2021 from 68.3 percent in 2015.

Top GSP exports of the country include crude coconut oil, vacuum cleaners, electrothermic hairdressing apparatus, prepared/preserved tunas, spectacle lenses, lead-acid accumulators, electric hairdryers, and new pneumatic tires.