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European Union

Philippines and EU to Hold Next Round of FTA Talks in October

Strategic Insights

— 1 min read

The Philippines and the European Union made significant progress in their free trade agreement (FTA) negotiations in Brussels, Belgium, with Trade Undersecretary Allan Gepty announcing that the next round of talks will be held in October. The successful negotiations have led to good progress in text-based discussions, with both parties agreeing to take advantage of intersessional sessions to fast-track the negotiations. The FTA is crucial for the Philippines as the EU is one of its major trade partners and sources of investments.

Key Takeaways:

  • The Philippines and the EU will hold the next round of FTA talks in October in Manila, following successful negotiations in Brussels, Belgium.
  • The trade deal is important for the Philippines as the EU is one of its major trade partners and sources of investments.
  • The FTA will cover elements on sustainability, good governance, and cooperation, in addition to trade and investments.
  • The Philippines is a beneficiary of the EU Generalized Scheme of Preferences Plus (GSP+), which allows the duty-free entry of 6,274 products to the bloc.
  • Last year, the Philippines' GSP+ utilization rate hit a record-high of 80 percent, with 80% of eligible products being duty-free imported to the EU.
  • Philipp Dupuis, minister counsellor and head of the Economic and Trade Section of the Delegation of the EU to the Philippines, noted that agri-food, chemicals, and footwear were the main beneficiaries of the GSP+ trade preference.
  • Total Philippine exports to the EU inched up by 3.1 percent to £9.1 billion last year.

Statistics:

  • The Philippines and the EU have conducted four rounds of FTA negotiations since resuming talks in October last year.
  • Last year, the Philippines' GSP+ utilization rate hit a record-high of 80 percent.
  • Of £2.8 billion worth of Philippine exports that are GSP+ eligible, £2.2 billion were exported using the trade preference last year.
  • Total Philippine exports to the EU inched up by 3.1 percent to £9.1 billion last year.

Sources:

  • Viber message from Allan Gepty, Trade Undersecretary
  • Interview with Philipp Dupuis, minister counsellor and head of the Economic and Trade Section of the Delegation of the EU to the Philippines

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