Von der Leyen – Marcos – Photo © European Union 2023
(MANILA) – The EU and the Philippines announced their intention Monday to explore a relaunch of talks for an ambitious, modern, and balanced free trade agreement, with sustainability at its core.
The bilateral ‘scoping process’ will assess to what extent they share a mutual understanding on the future FTA. If the process concludes successfully, and after consultations with the Member States, the EU and the Philippines would be in a position to resume FTA negotiations.
The EU and the Philippines first launched negotiations for an FTA in 2015. The last negotiating round took place in 2017 and negotiations have since been on hold. On 30 June 2022, the new administration assumed office and has shown willingness to engage with the EU on key issues of importance.
“The Philippines is a key partner for us in the Indo-Pacific region, and with the launch of this scoping process we are paving the way to taking our partnership to the next level,” said Commission president Ursula von der Leyen: “Together, we will realise the full potential of our relationship, creating new opportunities for our companies and consumers while also supporting the green transition and fostering a just economy.”
Following the resumption of FTA talks with Thailand earlier this year, the announcement further strengthens the EU’s strategic engagement with the burgeoning Indo-Pacific region region.
The EU said it is looking for a comprehensive FTA with the Philippines that includes ambitious market access commitments, swift and effective sanitary and phyto-sanitary procedures, as well as the protection of intellectual property rights, including Geographical Indications. Sustainability will also be at the heart of this agreement, with robust and enforceable disciplines on Trade and Sustainable Development (TSD). These will be in line with the Commission’s TSD review Communication of June 2022, supporting high levels of protection for workers’ rights, for the environment, and the achievement of ambitious climate goals.
The EU and the Philippines already have well-established trade relations, with clear potential for an even closer relationship:
- trade in goods was worth over 18.4 billion euros in 2022, while trade in services was worth 4.7 billion euros in 2021;
- the EU is Philippines’s 4th largest trade partner;
- the Philippines, the 5th largest economy in the ASEAN region, is the EU’s 7th most important trading partner in the region (and 41st worldwide);
- the EU is one of the largest investors in the Philippines, with the EU’s foreign direct investment stock in the Philippines reaching 13.7 billion euros in 2021.
