EU and the Philippines to start scoping exercise for a free trade agreement
Today, 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. The EU and the Philippines will shortly kick off a bilateral ‘scoping process’ to assess to which extent they share a mutual understanding on the future FTA. If this process concludes successfully, and after consultations with the Member States, the EU and the Philippines would be in a position to resume FTA negotiations.
Ursula von der Leyen, Commission President, said: “The Philippines is a key partner for us in the Indo-Pacific region, and with the launch of this scoping process we are paving the way to taking our partnership to the next level. Together, we will realise the full potential of our relationship, creating new opportunities for our companies and consumers while also supporting the green transition and fostering a just economy.”
Following the resumption of FTA talks with Thailand earlier this year, this announcement confirms the key importance of the Indo-Pacific region for the EU trade agenda, paving the way for deeper trade ties with another vibrant economy in South-East Asia and further strengthening the EU’s strategic engagement with this burgeoning region.
The EU aims for a comprehensive FTA with the Philippines that includes ambitious market access commitments, swift and effective sanitary and phyto-sanitary procedures, as well as the protection of intellectual property rights, including Geographical Indications. Sustainability will also be at the heart of this agreement, with robust and enforceable disciplines on Trade and Sustainable Development (TSD). These will be in line with the Commission’s TSD review Communication of June 2022, supporting high levels of protection for workers’ rights, for the environment, and the achievement of ambitious climate goals.
The EU and the Philippines already have well-established trade relations, with clear potential for an even closer relationship:
trade in goods was worth over 18.4 billion euros in 2022, while trade in services was worth 4.7 billion euros in 2021;
the EU is Philippines’s 4th largest trade partner;
the Philippines, the 5th largest economy in the ASEAN region, is the EU’s 7th most important trading partner in the region (and 41st worldwide);
the EU is one of the largest investors in the Philippines, with the EU’s foreign direct investment stock in the Philippines reaching 13.7 billion euros in 2021.