PHL-EU FTA nego resume in ‘24 after Sept ’23 scoping talks–DTI

By Andrea E. San Juan

THE resumption of formal negotiations on a free trade agreement between the European Union and the Philippines is expected to start in 2024 after the scoping discussions which will start in September 2023, according to Trade and Industry Secretary Alfredo E. Pascual.

We’ll start with the scoping discussion that will start sometime in September and the target is to complete before the end of the year. So that the formal negotiation of the FTA could follow suit hopefully by the start of the new calendar year 2024,” Pascual told reporters on the sidelines of the official visit of Von der Leyen in Makati City.

Pascual illustrated how the Philippines can benefit from a free trade agreement with the EU.

This FTA will result in investments because,” he cited as an example, if a manufacturing enterprise operating in Europe “can produce its products or their products here in the Philippines at a lower loss or lower production cost on export to Europe, which is enjoying preferential tariffs then that will be a a big boost to their profitability.”

A trade agreement, he added, “would normally be followed by investment companies that will make full use of the preferential trade arrangements.”

Meanwhile, Pascual also noted that once the Philippines attains upper middle income status by 2025, “What we want to happen of course is that all the preferential treatment we’re getting under [Generalised Scheme of Preferences] GSP plus will be carried over to the FTA so that there will be greater permanence of the preferential treatment that we’re getting now.”

T he Philippines is among the