EU, Philippines to continue strengthening trade investment ties

MANILA, Philippines — The European Union (EU) and the Philippines are set to further bolster trade and investment ties in the coming year amid previous issues concerning human rights and President Duterte’s tirades against the regional bloc.

“Overall, EU-Philippines trade and investment relations continue to grow in 2017 and are seen to increase further in the second half of the year. Specifically on investments, a more open regime to foreign investors will usher in more foreign companies in the Philippines that will aid in job creation and execution of big infrastructure projects of the government,” the EU-Philippines Trade & Investment 2017/2018 report said.

EU Ambassador to the Philippines Franz Jessen said the economic bloc expects trade and investment to help the Philippines achieve inclusive growth.

“Indeed, the EU and its industry have a positive agenda that is values-based and comes with an open dialogue to ensure nobody is left behind in strengthening these trade relations. I look forward to continuing to work together for the benefit of effective supply chains so the Philippines can take advantage of its position in the region and of its competitive skills and people. This in return will provide for jobs and inclusive growth, create opportunities for smaller businesses, and eliminate poverty and hunger. It will bring the Philippines to upper middle income level sooner,” Jessen said.

For his part, European Chamber of Commerce of the Philippines (ECCP) president Guenter Taus said his group remains committed in promoting the EU-Philippines economic ties through the facilitation of market access and the creation of a level playing field for both local and foreign businesses.

Trade Secretary Ramon Lopez said the Philippines recognizes the EU as one of its important partners towards prosperity and progress in the country and in the region.

“The EU, one of the largest regional blocs in the world, continues to be one of the valuable partners of the Philippines in achieving the desired inclusive growth that leads to shared prosperity for all,” Lopez said.

Total trade between the EU and the Philippines grew 17 percent during the first half of 2017 to $7.8 billion,  indicating good trade relations between the two economies despite the controversies.

EU imports from the Philippines in particular continued to expand, recording a 36 percent year-on-year  expansion, making the EU the second biggest export destination for Philippine-made products next to Japan.

Meanwhile, the EU is the fourth largest supplier to the Philippines.

Germany is the Philippines’ largest trading partner within the EU, followed by Netherlands, France, UK, Italy, Belgium, Spain, Ireland and Austria.

Together, these countries account for almost 90 percent of EU-Philippines trade, the report said.

EU investments in the Philippines also continued to grow, with the bloc accounting for 45 percent of total foreign approved investments in the Philippines during the first quarter of 2017.