Ursula von der Leyen, Commission president, highlighted the importance of the Philippines as a key partner in the Indo-Pacific region and expressed optimism about elevating the partnership to the next level. “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,” she said.

This announcement follows the recent resumption of FTA talks with Thailand and affirms the strategic significance of the Indo-Pacific region for the EU's trade agenda. The aim is to forge deeper trade connections with the vibrant South-East Asian economy and reinforce the EU's alignment with this expanding region, the European Commission said in a media release.

The EU's goals for the FTA with the Philippines encompass ambitious market access commitments, effective sanitary and phyto-sanitary procedures, intellectual property rights protection, and robust disciplines on Trade and Sustainable Development (TSD), aligned with the Commission's TSD review Communication of June 2022. Sustainability will be central to this agreement, emphasising high standards for workers' rights, environmental protection, and ambitious climate goals.

Trade between the EU and the Philippines was valued at over €18.4 billion in goods in the past year, positioning the EU as the Philippines' 4th largest trade partner. Moreover, the EU is one of the largest investors in the Philippines, with foreign direct investment stock reaching €13.7 billion in 2021.

Under the EU's Generalised Scheme of Preferences + (GSP+), the Philippines enjoys special incentives and duty-free access to the EU market for two-thirds of tariff lines. Continued access depends on adherence to international conventions on human rights, good governance, and environmental protection.

FTA negotiations between the EU and the Philippines commenced in 2015 but have been stalled since 2017. The new administration, which took office on June 30, 2022, has expressed readiness to engage with the EU on crucial issues.

This development aligns with the 2021 EU Indo-Pacific Strategy, confirming the EU's interest in resuming FTA negotiations with the Philippines. Alongside existing FTAs with Singapore and Vietnam, ongoing talks with Indonesia, Thailand, and a scoping exercise with Malaysia, this step further solidifies the EU's commitment to strengthening trade ties with the ASEAN region.

Additionally, In a significant move towards a sustainable future, von der Leyen and President Ferdinand Marcos have also launched the Team Europe Initiative on Green Economy under Global Gateway. The initiative is backed by a Team Europe contribution of €466 million.

The Team Europe Initiative on Green Economy aims to formulate an industry-led alternative to the prevailing plastic waste management system. The project seeks to build sustainable plastic value chains and minimise plastic waste and marine litter.

Fibre2Fashion News Desk (KD)