European business groups in the country have extolled the pronouncement of the resumption of free trade agreement negotiations between the Philippines and European Union, hailing it as a milestone as it is deemed to improve the Philippines-EU trade by €6 billion (P363-B).

In a televised briefing on Monday night in Brussels, Belgium, Trade Industry Secretary Alfredo Pascual and European Commission executive vice president Valdis Dombrovskis announced the resumption of negotiations for the Philippines-EU Free Trade Agreement.

Dombrovskis said the EU FTA is 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,” Dombrovskis said.

For his part, Pascual said the Philippines is eyeing to lock in the profits of the current EU Generalized Scheme of Preferences Plus and add more to the FTA.

Free trade agreements with the EU include technology transfer and bringing in more capital from EU companies to the Philippines, especially in mineral processing activities.

“We believe that technology and capital available from EU companies will enable us to achieve this value creation within our shores rather than us, exporting raw ores, and others making all the value out of our natural resource,” Pascual said during a joint press briefing in Brussels, Belgium.

Prime business destination

The European Chamber of Commerce of the Philippines said it welcomes the development.

“This renewed interest underscores the attractiveness of the Philippines as a prime business destination for European firms, emphasizing the mutual benefits of fostering deeper economic ties,” the ECCP said in a statement on Tuesday.

In 2023, the EU emerged as the country’s 5th largest trading partner with total trade amounting to $16.16 billion (8.1 percent share to Philippines total trade), the 6th export market with $8.37 billion, and the 6th import supplier valued at $7.79 billion.

Similarly, the EU has been a major foreign investment partner, with total foreign direct investments reaching $29.16 million in 2022 and $63.99 billion in 2023.

“The urgency to conclude the FTA before the end of the current administration in 2028 is further emphasized, especially considering the impending expiration of the EU Generalized Scheme of Preferences Plus  in 2027,” the group added.

The ECCP said the resumption of talks presents a crucial opportunity to enhance economic growth, deepen partnerships, promote sustainability, prosperity and progress.