MANILA (AFP) – The European Union (EU) and the Philippines will restart negotiations on a free-trade agreement as they seek to accelerate “a new era of cooperation”, European Commission President Ursula von der Leyen said yesterday.
Talks began in 2015 under then-Philippine president Benigno Aquino but stalled two years later under his successor Rodrigo Duterte, whose deadly drug war strained diplomatic relations with the West and sparked an international probe.
“I’m very glad that we have decided to relaunch negotiations for (a) free-trade agreement (FTA),” von der Leyen told reporters at a joint news conference with President Ferdinand Marcos in Manila.
“Our teams will get to work right now on setting the right conditions so that we can get back to the negotiations,” she said, noting an FTA has “huge potential for both of us” in terms of jobs and growth.
The European Union is the Philippines’ fourth-largest trading partner and an FTA would be Manila’s second bilateral deal after Japan.
Marcos described the Philippines and the European Union as “like-minded partners” with “shared values of democracy, sustainable and inclusive prosperity, the rule of law, peace and stability, and human rights”.
The Philippines enjoys a Generalised Scheme of Preferences Plus (GSP+) status that allows it to export 6,274 products to the European Union tax-free, but this is set to expire at the end of this year.
Under the GSP+ scheme, which is extended to developing countries, Brussels cuts its import duties to zero on two-thirds of product categories in return for implementing 27 international conventions on human rights, labour rights, the environment and good governance.
Von der Leyen, the first European Commission president to visit the Philippines, said the two sides had “learned the hard way the cost of economic dependencies”.
A free-trade agreement was the basis for diversifying supply lines and could also be “a springboard for a new technology cooperation to modernise the broader economy”.
She said the European Union would provide EUR466 million to help the Philippines develop “green energy” and plastics recycling, as well as provide satellite data to help it better prepare for extreme weather.
