MANAGEMENT Association of the Philippines president Donald Lim stressed that with the looming conclusion of the European Union-Philippines Free Trade Agreement, the country’s businesses should also be ready, competitive and backed by the government, by means of ensuring that power costs are cut and ease of doing business are being enjoyed by local and foreign investors.
Photograph courtesy of Management Association of the Philippines
Malacañang Palace said it is expecting that the agreed European Union-Philippines Free Trade Agreement (FTA) will further bring opportunities to businesses, attract more foreign investors and strengthen the country’s supply chain.
Palace press officer, Presidential Communications Office Undersecretary Claire Castro confirmed that President Ferdinand Marcos Jr. and European Commission President Ursula von der Leyen had a conversation, with the latter stating that they are finally agreeing to the long been dealt EU-Phl FTA.
“President Ferdinand Marcos Jr. highlighted the Philippines’ potential in new areas such as artificial intelligence and digital technologies while ensuring that farmers, manufacturers, consumers, and MSMEs will benefit from them. Meanwhile, von der Leyen emphasized the importance of the Philippines as a strong and reliable trade partner of the EU. Negotiations for the Phl-EU FTA were resumed in 2024,” according to Castro in a Palace briefing on Wednesday.
Castro said Marcos looks forward to the formal conclusion and eventual signing of the agreement at a later date.
“Both leaders agreed that the FTA is a testament to the strong partnership between the Philippines and the EU and their commitment to a rules-based order that promotes open and fair trade that is mutually beneficial,” she said.
Marcos, during his conversation with the EU Commission official, also emphasized that the FTA should redound to the benefit of Filipino farmers, manufacturers, consumers, and micro, small and medium enterprises (MSMEs).
“For her part, President von der Leyen stressed the importance for the EU of having stable and predictable trade partners such as the Philippines,” she said.
Once concluded and ratified, the EU-Phl FTA will benefit the country by unlocking up to $12 billion in export potential and securing long-term preferential access to a market of 450 million European consumers.
First launched in December 2015, paused in 2017, and formally resumed in March 2024, the negotiations spanned almost a decade of dedicated diplomatic and technical engagement.
The resulting modern, comprehensive deal covers critical areas including trade in goods and services, investment, government procurement, digital trade, intellectual property, trade facilitation, sustainable food systems, and trade and sustainable development.
MAP in full backing
Meanwhile, the Management Association of the Philippines said they strongly supports the Phl-EU Free Trade Agreement, as it will open a major market for Filipino products, create new opportunities for our MSMEs and exporters, and make the Philippines more attractive to European investors.
“But… signing an FTA is only half the job. We have to make sure Filipino businesses are competitive enough to take advantage of it,” it emphasized.
