EU & Philippines resume FTA talks with focus on sustainability

The proposed FTA is envisioned to encompass wide-ranging provisions, including ambitious market access for goods, investment, and government procurement, as well as the elimination of barriers to digital trade and trade in energy and raw materials. This initiative is poised to support the digital and green transitions, streamline sanitary procedures, protect intellectual property rights, and ensure robust disciplines on trade and sustainable development. These efforts align with the European Commission's Trade and Sustainable Development (TSD) review communication from June 2022, aiming to uphold high standards for workers' rights, environmental protection, and climate goals.

Current EU-Philippines trade relations are already substantial, with trade in goods valued at over €18.4 billion (approximately $20.03 billion) in 2022. The EU stands as the Philippines' fourth-largest trade partner, while the Philippines ranks as the EU's seventh most significant trading partner in the ASEAN region and 41st worldwide. Notably, the Philippines is projected to experience the second-highest economic growth in ASEAN with a 5.9 per cent GDP increase in 2024.

The EU is among the largest investors in the Philippines, with foreign direct investment stock reaching €13.7 billion in 2021. The Philippines' vast reserves of critical raw materials, such as nickel, copper, and chromite—essential for green technology manufacturing—further enhance its value as a strategic partner in the green transition. Recent efforts to harness renewable energy potential and liberalise the sector for foreign investors underscore the Philippines' role in advancing sustainable development.

The next steps in this pivotal partnership involve both parties making technical preparations for the first round of resumed negotiations, expected to occur later this year.

“The conditions are right to take our trade relations to the next level. Trade between the EU and the Philippines is already strong and has been growing at an impressive pace over the past decade. But we can do more to realise the full potential of our trade relationship. After concluding an extensive joint stocktaking exercise at the end of last year, we are reassured that we share a commitment to strive for a state-of-the art agreement, with sustainability at its core,” said European Commission’s executive vice-president Valdis Dombrovskis.

Fibre2Fashion News Desk (DP)