Phl set to start FTA talks with EU
The Philippines will start next week the initial round of negotiations for a free trade agreement (FTA) with the 28-member European Union (EU).
EU delegation to the Philippines head of trade Walter van Hattum said such deal would bring EU-Philippines relations to greater heights.
“The Philippines can do much better. Philippines is under-performing compared to other countries in the region,” Van Hattum said, referring to the extent of the country’s bilateral trade with the EU compared with other economies in Southeast Asia.
The Philippines is EU’s sixth largest trading partner in the region and 44th worldwide.
On the other hand, the EU is the Philippines’ fourth largest trading partner with bilateral trade amounting to P738 billion
The country was able to secure last year the EU’s nod to commence negotiations for the much sought-after PhilippinesEU FTA.
The negotiations will aim to conclude a deal that covers a broad range of issues such as elimination of customs duties and other barriers to trade, services and investment, access to public procurement markets, and additional disciplines in the area of competition and protection of intellectual property rights.
For European Chamber of Commerce of the Philippines president Guenter Taus, the growth of the local agriculture and tourism industries should be among the Philippines’ key priorities in making major commitments for the potential EU deal.
“I think, for me, there are a number of key industries the Philippines must focus on. One of them is agriculture. There are a lot of things to be done in the agriculture sector. I think another very important industry to me is tourism. The Philippines lines itself to be one of the best tourist destinations in the world yet we have never cashed in on it,” Taus said.
The Philippines has been on the scoping phase for its FTA negotiations with the EU since 2013, with the EU closely looking at the economic reforms being undertaken by the country to advance the FTA negotiations.
The Philippines is the fifth country within ASEAN to start negotiations for a bilateral FTA with the EU.
With improved market access and greater opportunity for investments, Van Hattum said a successful Philippines-EU FTA would help boost not only big companies but also start-ups.
“The Philippine economy is growing fast, and so is the EU-Philippines relationship in trade, investment, and tourism. This growth brings jobs, innovation, and development. But to get the best out of this growth, we need to nurture our startups, the job providers to our children,” he said.
“Let us create a level playing field for start-ups so they can innovate and compete also internationally by protecting their intellectual property rights, enforcing competition rules, and by easing regulations and procedures. The EU-Philippines FTA will do just that,” Van Hattum added.