EU FTA expected to open up $12B in potential PHL exports

THE PHILIPPINES will have access to additional exports estimated at $12 billion once it concludes a free trade agreement (FTA) with the European Union (EU), Trade Undersecretary Allan B. Gepty said.

- By Justine Irish D. Tabile Senior Reporter

Citing data from the International Trade Centre, Mr. Gepty said the estimate represents the unrealized potential for Philippine exports in Europe.

“Usually the reasons for this unrealized potential are two major factors: one is the lack of awareness of the opportunities, and the second is the difficulty in complying with certain rules and standards in accessing the European market,” he told reporters on Thursday.

“We are hoping that through this FTA that we are negotiating, we can in a way fill in the gaps or at least address some of the major issues that bar our (micro-, small-, and medium-sized enterprises) from accessing the European market,” he added.

The Philippines and the EU are looking at concluding the negotiations this year, moving up from the initial target of 2027.

“We are really working hard to conclude it this year because, of course, after the conclusion of the negotiation, there’s still legal scrubbing and signing, and then there’s ratification. It will take time before it becomes effective,” he said.

He said the parties are still on track to conclude the negotiations within the year, adding that “the probability is high.”

“March is a bit critical. We are hoping to stabilize the text,” he said, noting that the meeting in March will be the parties’ fifth full round of negotiations.

Up for discussion in March are market access as well as remaining issues in other chapters.