PCCI cites economic benefits from Philippines-EU FTA

April 4, 2024 | 12:00am

MANILA, Philippines — The country’s largest business organization welcomed the announcement of the resumption of the free trade agreement (FTA) negotiations between the Philippines and the European Union (EU) as it expects the deal to bring economic benefits for both parties.

In a statement yesterday, Philippine Chamber of Commerce and Industry (PCCI) president Enunina Mangio expressed optimism the FTA talks, which have been stalled for years due to the EU’s concerns on intellectual property, human rights violations and compliance with carbon emission standards in the Philippines, would reach conclusion as the deal is expected to strengthen bilateral cooperation and deepen economic ties and bring more market and investment opportunities.

“The PCCI welcomes the resumption of the Philippines-EU FTA talks. The FTA should be able to expand on opportunities, especially in services such as BPO (business process outsourcing) and KPO (knowledge process outsourcing), digital commerce and agri-technology,” she said.

As Filipino companies have benefited from the EU Generalized Scheme of Preferences Plus agreement, which allows duty-free entry of certain goods to the EU since 2014, she said Philippine exports to the bloc have increased.

“While it covered only over 6,000 commodities (or 66 percent of EU tariff lines), our exports rose by 27 percent just one year after we were given that incentive,” she said.

With the resumption of FTA talks, PCCI chairman George Barcelon emphasized that Philippine negotiators should be careful in giving in to certain conditionalities imposed by the EU and make sure these are justifiable and fair.

“There are other areas of concern as well, for example, those that impose high carbon emission standards that, for emerging economies, are barriers to attaining a higher level of growth. The EU must be realistic in its expectations of the Philippines. While being able to leverage on our comparative advantages for a Philippines-EU partnership, our negotiators must ensure we can comply without having to compromise our development,” he said.

The FTA between the Philippines and EU is aimed at enhancing market access for goods, services and investments.

It is also expected to ensure mutual market access and diversify supply chains, offering more opportunities for professionals and service providers.

For this year, the PCCI, in partnership with the Department of Trade and Industry, plans to implement an information campaign on the various FTAs the Philippines has with other countries.

The information sessions will include the Regional Comprehensive Economic Partnership agreement, as well as developments on the Philippines-EU FTA.