The Philippines is working to conclude negotiations for its free trade agreement (FTA) with Chile this year, following a successful first round of talks.

Department of Trade and Industry (DTI) Undersecretary Allan Gepty said that after a productive round of negotiations, both countries are now on track to finalize provisions of the Comprehensive Economic Partnership Agreement (CEPA) before the year ends.

Gepty, who just arrived from Chile, said the second round of talks is scheduled for the first week of October in Manila.

He is hoping that all chapters of the CEPA will be finalized by then.

“So that the remaining months of the year will just be delegated for fine-tuning the chapters. So that thereafter we can proceed with the legal scrubbing,” Gepty told reporters.

In December last year, the Philippines and Chile signed a joint statement to formally launch negotiations for a CEPA.

Once completed, the CEPA with Chile will be the Philippines’ first FTA with a Latin American country.

Apart from provisions aimed at strengthening trade in goods and services, the CEPA covers key areas such as investment, intellectual property, digital trade, competition, and financial services, among others.

“So basically this will expand our FTA network and support our direction to diversify the market and create opportunities for our businesses and investors,” said Gepty.

Gepty, the country’s top negotiator for FTAs, said Chile is essentially an untapped market for Filipino businesses.

The Philippines currently exports processed food and personal care products such as deodorants to Chile. In return, the Latin American country exports meat products, wines, and salmon.

Gepty said this variance in trade creates an opportunity for local producers to look at Chile as an alternative market or even as the primary market.

Trade in goods between the Philippines and Chile reached $141.24 million in 2023, with exports to Chile valued at $37.84 million while imports from it totaled $103.41 million.

The DTI official said another key focus for the CEPA is the service sector, as the government seeks to provide more job opportunities for professionals and service providers.

He added that CEPA will help drive more investments from Chilean companies, especially those from the mining and food sectors.

Minerals, particularly copper, account for 56 percent of Chile’s exports, while food products make up 24 percent.

Gepty noted that these firms can leverage their investments in the Philippines to access Southeast Asia and the broader Regional Comprehensive Economic Partnership (RCEP).

He said the CEPA can also help the Philippines learn from Chile’s utilization of FTAs.

With 35 FTAs under its arsenal, he said Chile can seamlessly access a substantial portion of the global market.

The Philippines is currently negotiating for an FTA with the European Union, the United Arab Emirates, and Canada.