Marcos: Phl-EU FTA will help boost economy

President Ferdinand Marcos Jr. said the free trade agreement (FTA) between the Philippines and the European Union (EU), which he expects to be finalized by 2027, would help boost the economy of both regions.

During the recent 2024 European-Philippines Business Dialogue and European Investors' Night in Makati City, Marcos said the FTA would help open up new markets for Philippine goods and services and make it easier for trade to improve between the two countries.

The talks for a Phl-EU FTA started in 2015 when President Benigno Aquino III was still in office but was then stalled when Rodrigo Duterte took office.

Discussions about the Phl-EU FTA resumed when Marcos went to Germany and the Czech Republic in March.

"We see the FTA as a crucial step in enhancing the trade partnership between the Philippines and the EU," said Marcos in a speech delivered by Executive Secretary Lucas Bersamin.

"We look forward to negotiations being finalized by 2027 and to elevating trade and investment flows through a comprehensive agreement that includes advanced provisions for digital trade and intellectual property rights," he added.

Marcos also discussed the benefits that the FTA could bring, estimating that trade would grow by six billion euros in many areas.

He said that the country was ready for the EU to keep investing in new and environmentally friendly industries like green energy, electronics manufacturing, and the automotive and e-vehicle sectors.

European companies can grow in the IT-BPM field and through public-private partnerships in sustainable infrastructure.

They can also do well in processing agricultural and fish products.

Marcos also told European investors about possible places to spend through public-private partnerships (PPPs) at the event.

"We also offer a range of investment opportunities for PPPs under our Build Better More program, which features 185 major infrastructure projects worth US$161 billion," said Marcos.

He said that the Philippine government has made big changes to the business environment to get the most out of the FTA.

These changes include the Retail Trade Liberalization Act, the Foreign Investment Act, and the Public Services Act.

Besides that, he talked about the Green Lanes Initiative for Strategic Investments, which aims to make it easier to get investment approvals for important projects.

The FTA will also help protect the progress made by the EU's Generalized Scheme of Preferences Plus (GSP+), which has already increased exports by offering lower duties.

The EU's GSP+ gives developing countries an additional incentive to work toward a good and sustainable government.

In exchange, the EU cuts more than two-thirds of the tariff lines on their exports.

"The GSP+ arrangement, which will expire in 2027, has significantly benefited our communities, including tuna fishers, banana, cacao, and pineapple farmers, with a utilization rate of 77 percent in 2022," Marcos said.