European partners

Despite continuing tirades from President Duterte, the Partnership and Cooperation Agreement that the Philippines and the European Union signed in 2012 takes effect today. This should help improve ties between the Philippines and the EU, which have been strained by human rights issues in connection with the President’s ruthless war on drugs.

The European Union is the third largest trading partner of the Philippines and the fourth largest source of remittances from overseas Filipino workers. Thanks to a preferential duty-free status accorded only to the Philippines among all Southeast Asian states, the EU was the country’s third largest export market in 2017, with many of the products made by micro, small and medium enterprises.

Europeans account for 80 percent of the multi-donor Mindanao Trust Fund, which supports recovery efforts in the conflict zones of Mindanao. The EU is one of the top 10 sources of official development assistance for the Philippines, apart from the bilateral aid provided by several individual EU states.

With a population of some 500 million, the 28-member EU counts among its members many of the most advanced economies with strong purchasing power. EU shipping companies are the largest employers of Filipino seafarers.

Apart from those direct jobs, the Europeans are also indirect employers of Filipinos. The Generalized Scheme of Preferences Plus or GSP+ status that the Philippines continues to enjoy covers 6,200 products that the country exports tariff-free to EU states. This helped Philippine exports to the EU grow by 31 percent or $8.4 billion last year.

The Europeans are among the top sources of foreign direct investment and tourists in this country, but the figures pale compared to those in other Southeast Asian states. Instead of going out of its way to drive investors and travelers away, the Philippine government must compete aggressively with its neighbors.

Apart from the economic benefits of strengthening ties with the EU, the Philippines must give importance to relations with a region whose democratic values are shared by Filipinos. Those who fought for Philippine independence from colonial rule were inspired by freedom movements in Europe. More than economic considerations, the country must build alliances based on shared values.