A high-ranking official of the Department of Trade and Industry said the French government continues to have confidence in the Philippine business environment despite corruption controversies.

Trade Undersecretary for Foreign Relations Allan Gepty stressed that corruption is not unique to the Philippines and affects other nations as well.

“It is a problem that every country, every economy faces. Wherever you are, you have to address corruption because it is a serious issue that we have to be vigilant in combating. The good thing in our joint economic committee meeting, we discussed all issues and concerns relating not only to trade and investments, but also to development and technical assistance, and infrastructure development. So, any issue that would hinder the facilitation of our engagement with any trading and investment partner, we have to discuss that and find a solution,” Gepty said during the 11th Philippines-France Joint Economic Committee (JEC) Meeting on Tuesday at the Sheraton Manila Hotel in Pasay City.

Gepty said that while corruption issues affect bilateral trade and investments, what matters is the strength of the Philippines’ relationships with partner countries.

“Because if I put it in the context of the interest of France to invest here in the Philippines, given the wide range of areas that they are interested in to explore opportunities, I think that is a reflection of France’s trust in the Philippine government,” he said.

French firms and the French government have expressed interest in investing in aviation, infrastructure, maritime, agriculture, field development, aerospace, human capital development, railways, and satellite industries, Gepty added.

Procedural delays

Asked about the challenges French firms face in investing in the Philippines, Magali Cesana, head of Bilateral Affairs of the French Treasury, pointed to procedural delays.

“It is something that we discussed a lot, the question of the way to alleviate delays in the procedure. We signed a government-to-government (G2G) agreement last year, and it has taken a long time for its implementation. But I am sure we will be quicker in the next project,” she said.

Cesana also emphasized the importance of addressing corruption to maintain investor confidence.

“It is crucial (for us). And I am optimistic about this field because it has been well understood by the Philippine authorities. It’s necessary to put robust safeguards to ensure transparency in the procedures of project implementation,” she said.

In June 2024, the Philippines and France signed a G2G pact on financial and development cooperation to support projects aimed at reducing poverty and promoting inclusive growth. The agreement allows the Philippines to secure concessional official development assistance and blended financing for priority programs of the Marcos administration.

The pact was signed by Finance Secretary Ralph Recto and French Ambassador Marie Fontanel.

Gepty noted that France is an important partner among the 27 European Union member states as the Philippines pushes for the EU Free Trade Agreement.

“France is very supportive of our advocacy to push for the FTA negotiation. So, we really have to maintain good relations with them,” he said, adding that in 2024, France was the Philippines’ 19th largest trading partner, with trade valued at $1.54 billion.