PH looking to expand economic ties with EU

THE Philippines wants to expand its economic ties with the European Union, Trade Undersecretary Allan Gepty said on Wednesday at the 3rd EU-Philippines Partnership Conference.

“There are still many potentials to be explored, not only in market access for goods but also for services and investments, and other areas like innovation, digital trade and energy,” Gepty pointed out, noting that while progress has been made in traditional trade, many untapped opportunities remain in the aforementioned fields.

In 2023, the EU was the Philippines’ fifth-largest trading partner valued at $16.17 billion, accounting for over 8 percent of total trade.

Amid ongoing negotiations on the Philippines-EU free trade agreement (FTA), EU delegation to the Philippines Minister Counselor and Economic Trade Section head Philip Dupuis said they aim to boost bilateral trade and establish clear rules across all areas.

The FTA will open new opportunities for Filipino and European stakeholders alike, “and further solidify ties with one of the fastest-growing economies in Southeast Asia,” he said, adding the agreement will provide the Philippines preferential access to the EU single market with over 450 million consumers.

“For the Philippines, it will expand beyond exports of goods, and put on a permanent basis what EU’s Generalized Scheme of Preferences Plus (GSP+) provides today,” Dupuis expounded.

Gepty cited the success of the Philippines’ participation in the EU GSP+ — saying that since its implementation in 2014, the trade program has led to a substantial increase in Philippine exports. From 5.3 billion euros in 2014, Philippine exports to the EU totaled 8.6 billion euros in 2023, the second highest after 2022’s 10.41 billion euros.

The EU has likewise been one of the largest sources of foreign investments to the Philippines, with total net foreign direct investments in 2023 amounting to $63.99 million and approved investments at $13.41 billion.

Gepty reaffirmed the Philippines’ shared values with the EU, particularly in human rights, labor standards, good governance and environmental sustainability.