Today, the EU and the Philippines officially announced the resumption of negotiations for an ambitious, modern and balanced free trade agreement (FTA) – with sustainability at its core. Trade agreements such as these are a cornerstone of the EU’s economic security, opening new opportunities for businesses and consumers, strengthening supply chains and promoting sustainable trade practices. An FTA with the Philippines, a booming economy of 115 million people in the heart of the strategically important Indo-Pacific region, would therefore be a valuable addition to the EU’s network of trade deals.
The EU aims for a comprehensive FTA with the Philippines that includes ambitious market access for goods, services, investment and government procurement; the removal of obstacles to digital trade and trade in energy and raw materials, thereby supporting the digital and green transitions; swift and effective sanitary and phyto-sanitary (SPS) procedures; sustainable food systems (SFS); the protection of intellectual property rights including Geographical Indications (GIs) and robust and enforceable disciplines on trade and sustainable development (TSD) – in line with the Commission’s TSD review Communication of June 2022, supporting high levels of protection for workers’ rights, 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 in 2022, while trade in services was worth €4.7 billion in 2021;
the EU is the Philippines’ 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 Philippines is among the fastest growing emerging economies in the world, projected to see the 2nd highest economic growth in ASEAN with 5.9% GDP growth in 2024;
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 in 2021.
In addition to being a significant and growing economy, the Philippines also has major reserves of critical raw materials, including nickel, copper and chromite, which are vital for the manufacture of green technologies. Combined with the Philippines’ renewed efforts to harvest its renewable energy potential and recent liberalisation for foreign investors in the sector, the Philippines is an important partner in the green transition.
Next steps
The EU and the Philippines will now make their respective technical preparations for the first round of the resumed negotiations, expected to take place later this year.
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