DTI takes shot at FTA with Europe
We, the German government, as well as Turkey are very much in favor and support for an FTA with the Philippines, but it’s not a decision alone of the Philippines but an EU Process
The Philippines receives a strong support from Germany to seal a free trade agreement with European Union nations.
On the sidelines of the 2022 Philippine -German Business Forum, dedicated to creating a discourse in promoting and strengthening the bilateral trade and economic ties between the Philippines and Germany, the German Ambassador Anke Reiffenstuel said Germany and Turkey were the first countries that aired intentions to have an FTA with the Philippines.
The Philippines has no FTA deal with the Philippines, although it has been eyed and there have been exploratory FTA scoping meetings between PH and the EU that started in 2013. The last discussion for an EU FTA was in 2015 but did not prosper.
“We, the German government, as well as Turkey are very much in favor and support for an FTA with the Philippines, but it’s not a decision alone of the Philippines but an EU process. I think the private sector must do its part to push for the FTA,” Reiffenstuel said.
Currently, the Philippines only enjoys the EU Generalized Scheme of Preferences Plus or GSP+, which will expire in December 2023, which the Philippine government has been aiming to renew by next year.
Countries that wish to apply must uphold 27 international conventions on human rights, labor, environment and climate protection, and good governance.
For his part, Trade Secretary Alfredo Pascual said the EU Commission is now in the process of reviewing the performance of those covered by the GSP+ and its possible renewal in 2024.
“I was in Brussels recently, precisely to discuss to the EU Commission our desire to be continually covered by the GSP+, and also our request that we resume negotiations for a formal FTA. Hopefully, the discussions will be favorable,” Pascual said.
German opportunities
Meanwhile, Pascual, during his speech at the said event, highlighted the Philippine government’s thrust in further collaboration with the German government.
He said that during his meeting with German Federal Minister for Economic Affairs and Climate Action Robert Habeck, at the sidelines of the Asia Pacific Conference in Singapore, he raised the Philippines’ interest in the support of the 300 billion euro Global Gateway Fund.
“This available financing will allow EU companies including Germany’s private sector to participate in the various ongoing infrastructure developments here in the Philippines. The new Philippine administration has revived the private-public partnership arrangements for infrastructure projects in the fields of water storage and management, renewables, waste management, logistics and transportation, and disaster mitigation,” he said.