Business Bayani PH

The Department of Trade and Industry (DTI) is anticipating the completion of the assessment on the resumption of negotiations for a free trade agreement (FTA) between the Philippines and the European Union (EU) by the first quarter of this year.

In an interview with DTI undersecretary Allan Gepty, he revealed that the stocktaking exercise began last year following the visit of European Commission President Ursula von der Leyen on July 31. During her visit, she announced the EU’s interest in reigniting talks for an FTA with the Philippines, the Philippine News Agency reported.

The stocktaking meetings, involving technical experts from both the Philippines and the EU, were successfully concluded in the last quarter of 2023. These sessions offered insights into the expectations for renegotiating the FTA, which has been on hold since 2017.

Gepty emphasized the need to address developments and changes that have occurred since the suspension of talks. He told reporters: “We have to sit down again, try to discuss what are the things we have to consider should we decide to resume the FTA negotiations.”

Taking into account the EU trade agenda, the Philippine side aims to secure the same benefits enjoyed by other nations with existing free trade deals with the EU. Gepty added that the EU is emphasizing elements of a sustainable development agenda, including concerns related to the environment and climate change.

“The value and importance of expanding our FTA network and trade relations cannot be overemphasized,” emphasized Gepty, who serves as the country’s lead negotiator for FTAs. 

He highlighted the positive impact of FTAs, saying, “FTAs have opened new markets and ensured preferential tariff commitments for the country.”

Gepty further explained, “We intend to use trade negotiations as a tool to push for export competitiveness and ensure that the rules of trade are fair, transparent, non-discriminatory, and trade-restrictive non-tariff measures are addressed.”

Currently, the Philippines has three bilateral FTAs, namely with Japan, South Korea, and the European Free Trade Association. In addition to the ongoing bilateral FTA engagements with the EU, the country is actively pursuing FTAs with the United Arab Emirates and India.

The resumption of talks between the Philippines and the EU holds significant economic implications for both parties. 

As the assessment phase draws to a close, stakeholders eagerly anticipate the potential expansion of trade relations, opening doors to new opportunities and reinforcing the commitment to fair and transparent international trade practices. 

The outcome of these negotiations will undoubtedly shape the economic landscape for the Philippines and strengthen its position in the global market.◼