TRADE and Industry Secretary Alfredo E. Pascual said the Department of Trade and Industry (DTI) will exert “all efforts possible” to finish the formal negotiations on the trade agreement between the Philippines and the European Union before the end of the administration of President Ferdinand R. Marcos Jr.
“We will really exert all efforts possible to get it done before the end of the Marcos Jr. administration,” Pascual said on the sidelines of the media briefing for the resumption of trade negotiations on a free-trade agreement between EU and the Philippines.
The Trade chief based his confidence on the fact that there had already been past negotiations between the EU and the Philippines on the trade deal.
Pascual said DTI will start with the scoping discussion sometime in September, with a target to complete this before the end of the year.
“So that the formal negotiation of the FTA could follow suit hopefully by the start of the new calendar year 2024,” Pascual told reporters on the sidelines of the official visit of European Commission President Ursula Von der Leyen in Makati City.
On Monday, the EU and the Philippines announced their intention to explore the relaunch of negotiations for an ambitious, modern, and balanced free trade agreement (FTA)—with sustainability at its core, according to the EU website.
Pascual illustrated how the Philippines can benefit from a free trade agreement with the EU.
“This FTA will result in investments because,” he cited as an example, if a manufacturing enterprise operating in Europe “can produce its products or their products here in the Philippines at a lower loss or lower production cost on export to Europe, which is enjoying preferential tariffs then that will be a big boost to their profitability.”
A trade agreement, he added, “would normally be followed by investment companies that will make full use of the preferential trade arrangements.”
Meanwhile, Pascual also divulged that under the leadership of President Marcos Jr., the interagency negotiating team will work closely with its European counterparts to ensure the success of this scoping exercise.
“Our mutual objective is to officially resume the PH-EU FTA negotiations at the most reasonable time, bolstering our economic cooperation for the benefit of our people,” Pascual said in his speech during the media briefing.
“This endeavor is not just a priority for our government but also strongly supported by the business sector. Entities such as the German Philippine Chamber of Commerce and Industry [GPCCI], the EU-AseanBusiness Council, and the European Chamber of Commerce of the Philippines [ECCP] have led the call to resume the FTA negotiations. The backing from European companies, as reflected in ECCP’s survey, further reinforces the importance of this strategic partnership,” Pascual also noted.
Image credits: Rolex dela Pena/Pool Photo via AP