The Philippines is aiming to sign its first economic agreement with a Latin American country by next year, as talks on the Philippines-Chile Comprehensive Economic Partnership Agreement (CEPA) progress, the Department of Trade and Industry (DTI) said.

According to DTI Director for International Trade Relations Marie Sherylyn Aquia, the government hopes to conclude negotiations within the year and sign the accord in 2026. The deal is projected to deliver between $8 million and $9 million in trade gains for the Philippines, alongside $1 million in increased consumer welfare.

Framework for increased trade

“The CEPA with Chile aims to establish a framework for increased trade and investment that boosts economic growth and welfare,” Aquia said during a virtual public consultation organized by the Tariff Commission.

Gains are expected to come from trade creation ($3.19 million) and trade diversion ($4.68 million), with Chile forecast to shift some imports away from traditional partners like China, the US, Vietnam, and Thailand. Opportunities for Philippine exports are seen in agrifood, minerals, electronics, energy and agriculture.

22 negotiating chapters

The deal will cover 22 negotiating chapters, including trade in goods and services, investment, digital trade, intellectual property, customs facilitation, and MSME participation in global value chains.

For goods, Philippine negotiators are pushing for maximum tariff liberalization for priority products while protecting sensitive sectors. The country is also seeking liberal rules of origin, clearer sanitary and phytosanitary (SPS) measures, and more predictable customs procedures.