German firms are clamoring for the resumption of trade talks between the Philippines and the European Union and even dangled some first time investment here if the agreement is sealed.
In a joint survey by the German chambers here and in Singapore, it was reported that most of German companies are in support of the resumption of free-trade agreement negotiations between the Philippines and the EU. The survey showed that 83 percent of them find the FTA to be of high importance to their operations.
Here in the country, at least 45 percent of German investors vowed to expand their current investments if the trade deal is concluded.
Further, the survey indicated that more than 50 German respondents would consider doing a pioneer investment if the FTA liberalizes the Philippine investment regime. For Tristan Arwen G. Loveres, president of the German-Philippine Chamber of Commerce and Industry (GPCCI), this shows the urgency for the Philippines and the EU to return to the negotiating table.
He recommended that talks could resume this year, especially now that both economies are hit hard by the coronavirus pandemic and are in need of a boost in trade.
“The results show the huge potential for the Philippine-German and more general for the Philippine-European economic relations. We encourage that the next negotiation round be scheduled this year,” Loveres said.
GPCCI Executive Director Martin Henkelmann supported the call and said the trade deal will be crucial in stimulating the economy of both parties: the Philippines and the EU.
“All countries and regions look for measures to stimulate the economy after the Covid-19 pandemic in the coming years. A Philippine-EU free- trade agreement linking these two important economic players would have a strong impulse,” Henkelmann pointed out.
Bilateral negotiations between Manila and Brussels began in 2015 and two rounds of negotiations were conducted in 2016 and 2017.
There were, however, some differences that have to be settled between the two camps, especially on the issue of drug war killings and other human-rights violation cases in the Philippines under the current administration.
Germany is one of the country’s largest trading partners worldwide and the largest from the EU. Last year two-way trade improved nearly 6 percent to $5.55 billion, from $5.24 billion in 2018.