President Marcos is hoping that the free trade agreement (FTA) between the Philippines and the European Union would be finalized by 2027.
“We see the FTA as a crucial step in enhancing the trade partnership between the Philippines and the EU,” Marcos said in a message delivered by Executive Secretary Lucas Bersamin during the 2024 European-Philippines Business Dialogue and European Investors’ Night in Makati City on May 6.
“We look forward to negotiations being finalized by 2027 and to elevating trade and investment flows through a comprehensive agreement that includes advanced provisions for digital trade and intellectual property rights," he added.
The FTA negotiations mark a milestone in the Philippine-EU partnership as both sides reaffirmed their commitment to crafting a comprehensive and balanced agreement that will elevate trade and investment flows between their regions.
The Philippine government, he said, is optimistic that the FTA will unlock new opportunities, significantly increasing market access for Philippine goods and services and at the same time, facilitate the flow of investments, technology, and expertise, bringing mutual benefits to both sides.
“The FTA is more than just an agreement; it is a symbol of our shared vision for a future of prosperity and collaboration,” the President said.
He further said that the FTA's projected increase in trade of 6 billion euros underscores the vast opportunities available in various sectors.
To maximize the benefits of the FTA, he said the Philippine government has enacted significant reforms enhancing the business environment, such as the Retail Trade Liberalization Act, the Foreign Investment Act, and the Public Services Act.
He also cited the Green Lanes Initiative for Strategic Investments which aims to streamline the process of investment approvals for strategic projects.
The FTA will also help secure the gains achieved through the EU’s Generalized Scheme of Preferences Plus (GSP+), which has already spurred export growth through preferential tariffs.
“The GSP+ arrangement, which will expire in 2027, has significantly benefited our communities, including tuna fishers, banana, cacao, and pineapple farmers, with a utilization rate of 77 percent in 2022,” he noted.
The EU’s GSP+ gives developing countries a special incentive to pursue sustainable and good governance, with the bloc in return cutting to zero more than two thirds of the tariff lines of their exports.