Phl making big push to boost trade, investment ties with Europe

MANILA, Philippines - The Philippines is making a big push to strengthen its trade and investment ties with Europe as it is set to sign a Joint Declaration on Cooperation that will serve as basis for discussions for a possible free trade agreement (FTA) with the European Free Trade Association (EFTA) next week.

In a statement, the Department of Trade and Industry (DTI) said the signing is scheduled during the EFTA ministerial meeting in Iceland on June 23.

“Pursuing a strategic partnership with EFTA is one of the country’s priority trade engagements. Potential exports to EFTA could include products which we are already exporting to the European Union (EU). We are also an ideal processing hub for food exporters like Iceland and Norway,” Trade Undersecretary Adrian Cristobal Jr. said.

 The JDC seeks to expand trade relations through exchange of views and cooperation in the areas of technical barriers to trade, sanitary and phytosanitary measures, trade facilitation, intellectual property rights, public procurement, competition and sustainable development. 

It also aims to promote private sector cooperation as well as provide the establishment of a joint committee allowing the parties to discuss other issues of mutual interest.

 â€œThe JDC is key to identifying areas where we can complement EFTA’s industries with our own areas of strengths and to replicate the model in various applicable sectors. Building on the potential exports to EFTA based on Philippine exports to EU could address concerns on the geographical distance of the market while investments in food processing, shipping and the maritime sectors are also areas to explore, “Cristobal said.

 The EFTA is composed of Iceland, Liechtenstein, Norway, and Switzerland. 

The Philippines and EFTA have been conducting a series of high-level and expert group meetings since 2011.

The parties have also been working on the JDC as an initial step to FTA negotiations. 

“A consultation with the relevant government agencies and the private sector is critical if we are to pursue an FTA with EFTA.  We need to take stock of our capacities as a country, identify non-tariff barriers, and further build our offensive interests,” said Cristobal.

Trade Assistant Secretary Ceferino Rodolfo told reporters that apart from EFTA, the Philippines also looks to strengthen trade and investment relations with the EU through the Generalized Scheme of Preferences Plus (GSP+) and a possible FTA.

“We’re really moving forward with our  strategy. We are on track with the EU GSP+  application. For the scoping (for possible FTA), hopefully, it can be done within the year,” he said

The EU GSP+ will allow the Philippines to enjoy more trade benefits as the scheme covers 6,274 products which can enter the EU at zero duty.

The Philippines is currently a beneficiary of the regular GSP, which covers 6,209 products, with 2,442 products subject to zero duty and the rest slapped with lower tariffs.

Helena Konig, head of the EU’s Directorate General for Trade Unit for South and Southeast Asia said earlier the scoping will ensure both the Philippines and trading bloc agree on what they want to get from the FTA.