Spain, Phl eye deeper economic ties ahead of 80th Diplomatic anniversary

Business and diplomatic leaders from Spain and the Philippines convened at the Independence Headquarters of the Madrid Chamber of Commerce to promote bilateral trade, infrastructure investments and digital partnerships ahead of the 80th anniversary of diplomatic relations between the two nations in 2027.

The strategic conference, titled "Business Connection: Spain and the Philippines," was organized by the Madrid Chamber of Commerce in partnership with the Embassy of the Philippines in Spain, the Philippine Trade and Investment Center in Madrid (PTIC-Madrid), and the IT and Business Process Association of the Philippines (IBPAP).

Discussions centered on investment prospects in the Philippines, which boasts a population of more than 117 million, an annual economic growth rate exceeding 5 percent and a recent World Bank classification as an upper-middle-income economy.

Madrid Chamber of Commerce president Ángel Asensio and Philippine Ambassador to Spain Philippe Jones Lhuillier opened the forum by emphasizing the enduring historical and cultural ties linking both countries.

Asensio noted that international expansion is an obligation of competitiveness for Spanish enterprises, describing the Philippines as a market offering extraordinary opportunities.

Commercial Counselor Althea Karen Antonio thanked Spanish firms for their strong engagement and underscored the archipelago's strategic role as a gateway to the Association of Southeast Asian Nations (ASEAN) region, a consumer market of more than 600 million people.

"I want to especially highlight the priority that Spain has given to the Philippines as a strategic country within the ASEAN region," Antonio said, expressing optimism for future business alliances.

Philippine Embassy Deputy Chief of Mission Mark F. Hamoy pointed to the country's demographic advantage, citing a young workforce with an average age of 26 and roughly 700,000 new university graduates entering the labor pool annually.

Key investment drivers presented during the forum include the Philippine government's $183 billion "Build Better More" infrastructure program, which spans 207 major projects, alongside the Luzon Economic Corridor—an initiative recently joined by Spain and the European Union.

Officials also highlighted reforms allowing 100 percent foreign ownership in renewable energy projects, as well as ongoing negotiations for a European Union-Philippines Free Trade Agreement targeted for conclusion in 2027.

The country's information technology and business process management (IT-BPM) sector, marking its 25th year as a global industry hub, also drew strong interest. IBPAP President and CEO Celeste Ilagan reported that the sector is projected to employ 1.94 million full-time professionals and generate $42.3 billion in revenue in 2026.

"Our sector is strategic and capable of accompanying Spanish companies in their needs for international expansion," Ilagan said, noting the industry's capabilities in global capacity centers, software development, artificial intelligence, financial services and healthcare management.

Spanish firms already operating in the Philippines shared updates on their local footprints. Geraldine Filippi, senior vice president for public affairs at travel technology firm Amadeus, noted that the company will mark 30 years in the Philippines in June 2027, highlighting its work on airport digitalization and biometric e-Gate systems.

Meanwhile, Calidad Pascual director of International Marketing Roberto Bernuy announced plans to expand the Spanish dairy and food company's local presence following its entry into the Philippine market over a decade ago.

"We are going to take a new step, which is the creation of a factory there in the country to be able to produce locally, which is a milestone for us," Bernuy said, adding that domestic production will accelerate the company's growth across the Philippine consumer market.