THE PHILIPPINES is hoping to conclude negotiations for a free trade agreement (FTA) with the European Union (EU) by 2026, a trade official said.
On the sidelines of the 50th Philippine Business Conference and Expo, Department of Trade and Industry (DTI) Undersecretary Allan B. Gepty said 2026 is the internal target, but President Ferdinand R. Marcos, Jr. has said that the ultimate aim is for negotiations to wrap up by 2027.
“Internally, we are targeting 2026. So we will exert all our efforts. Because the EU is our major source of investments and an FTA will definitely increase investment,” Mr. Gepty said.
“In fact, just the signal that we are working towards an FTA already has a positive effect, so we hope to sustain that momentum,” he added.
The two parties resumed negotiations in Brussels last week. Talks had been on hold since 2017.
According to Mr. Gepty, the internal 2026 target will ensure no gap in trade privileges should the Philippines lose EU concessions by graduating to upper-middle-income status.
The Philippines participates in the EU’s GSP+, a special incentive arrangement for low and lower middle-income countries. It grants the country zero duties on 6,274 made products.
“In that context, there’s a pressure for us to conclude the negotiations ASAP because we don’t have a gap in our trade with the EU as far as enjoying preferential arrangements is concerned,” Mr. Gepty said.
“Right now, exporters that currently enjoy the preferential access will lose their competitive advantage,” he added.
Mr. Gepty said that the Philippines and the EU “made good progress in the first round,” describing the talks as “very positive and constructive.”
Meanwhile, he said that the second round of negotiations is set to happen in the Philippines on Feb. 11-13.
“In February… we will try to conclude as many provisions as possible. We will see if we can tackle market access,” he said.
“And then we will have the third round in June and the fourth round in October. So basically… we want to finish as soon as possible for so many reasons,” Mr. Gepty said.
Meanwhile, he said that the negotiations for the Comprehensive Economic Partnership Agreement (CEPA) with the United Arab Emirates (UAE) could be concluded, at the latest, by the first week of November.
“This year is the 50th anniversary of our diplomatic relations with the UAE, so one of our deliverables is the conclusion of this FTA negotiation,” he said.
On plans of entering an FTA with Chile, he said that the joint study it is currently conducting is expected to be concluded this month.
“We will have a joint committee meeting in November, so I hope by that time, it will already be done,” he said. — Justine Irish D. Tabile