MANILA, Philippines — Sweden’s foreign trade ministry urged restarting negotiations for a free trade agreement between the Philippines and the European Union.
This is what Sweden’s foreign trade minister, Johan Forssell, told journalists in a briefing on Friday. For context, negotiations began in 2015. The second round of talks were held in November 2017 but were put on-hold in November 2020.
“They have not been finalized, perhaps when the momentum has been lost for a few years. What we are saying now is when the time is right, we should restart those negotiations,” Forssell said.
Alfredo Pascual, secretary of the Department of Trade and Industry, issued a similar call in February.
“That must be the ultimate goal,” Forssell added.
He capped off a two-day trip in Manila, as he sat down with DTI and the Department Energy. Later on Friday, Forssell was slated to sit down with the Departments of Finance, Foreign Affairs, and Defense.
As it is, government data revealed that “26%” of the Philippines’ exports relied on the EU Generalized Scheme of Preferences Plus. This agreement is set to expire by the end of the year.
Sweden’s exports to the Philippines in 2022 amounted to $152 million. This increased by 10.5% between 2019 and 2022. On the other hand, the Philippines’ imports to the Scandinavian country hit a value of $124 million, ballooning 127% within those same years.
Sweden, which opened the world’s largest IKEA store in the country back in 2021, reiterated that the Philippines is a key market for them.
“There is growing interest in Sweden to invest in the Philippines. We‘re talking about next year but also the coming 10, 15, 20, 30 years. That is because of the possibilities we see here and very strong underlying economic growth and young population,” Forssell said.
Sweden is sharing the presidency of the Council of the European Union, holding it for six months since the start of 2023.