Switzerland expects bilateral trade and investment with the Philippines to continue growing in the coming years through stronger promotion of its free trade agreement (FTA) under the European Free Trade Association (EFTA).

Swiss Ambassador to the Philippines Nicolas Brühl said the limited level of awareness about the existing FTA between the Philippines and members of the EFTA, including Switzerland, has largely tempered the growth in trade between the two countries.

“One thing is the distance. But then as well the awareness that we have this free trade agreement. And the fact that if people would know that better, that would help a lot,” he told reporters.

Established in 2018, the FTA granted the Philippines deeper market access to the EFTA, which consists of Switzerland, Norway, Iceland, and Liechtenstein.

According to the Department of Trade and Industry (DTI), the trade pact sought to lower tariff barriers for key Philippine exports, such as agricultural goods, electronics, and fisheries.

It was also meant to support sustainable market expansion by leveraging the EFTA’s high-income economies, while also encouraging investments in sectors such as renewable energy, healthcare, and technology.

When the FTA entered into force in 2018, total trade between the Philippines and the EFTA reached €562 million before peaking at €789 million in 2022.

However, total trade between the two parties fell by 12 percent to €697 million in the following year before declining further to €690 billion both in 2024 and 2025, based on EFTA data.

Asked if there is a need to update the FTA to strengthen bilateral trade, Brühl said there is still no need to pursue a fresh deal, as the problem largely lies in the minimal promotion of the agreement.

“For us, the Philippine market is relevant but we can even do more. So it would be good if the Philippine government do the relevant effort as well,” he said.

In terms of investments, Brühl said he expects Swiss capital to continue flowing into the Philippines, especially since Switzerland is the country’s fifth-largest foreign investor.

“It would go further for the coming years…but we need perhaps more success stories that the people really know,” he said.

While there are still persistent business concerns in the country, Swiss Chamber of Commerce of the Philippines (SwissCham) Chairperson Felix Fiechter said Swiss investors remain bullish about expanding and setting up shop here.

At present, he said there are at least two Swiss companies already looking to open operations in the country soon, with potentially more in the pipeline.

To strengthen trade between the two countries, SwissCham has been encouraging more Filipino exporters to consider Switzerland as one of their potential export markets.

“The Chamber is looking very, very hard for Filipino companies that export or want to export to Switzerland, because that's one of our mandates, to help Filipino companies find their way in Switzerland,” said Fiechter.

He said Switzerland would be particularly interested in the Philippines' agricultural exports, which can enter the Central European country under preferential tariff rates.

Based on EFTA data, Switzerland’s exports to the Philippines reached €343 million last year, while imports from the Philippines stood at €236 million.