Philippines boosts ties with Italy

MANILA, Philippines — The Philippines wants to strengthen its ties with Italy through greater trade and investments, according to the Department of Trade and Industry (DTI).

During the 10th anniversary celebration of the Italian Chamber of Commerce in the Philippines Inc., Trade Secretary Ramon Lopez said there is still a lot of room for opportunities for the countries’ bilateral economic relations.

He said both countries recently achieved economic milestones with the Philippines posting a 7.1 percent gross domestic product growth in the third quarter this year, while Italy had a better than expected performance during the same period.

“With this recovery momentum, we ensure that DTI will continue to push for programs that will help further our trade and investment relations with all our investment partners such as Italy,” he said.

Lopez said Italy is considered an important contributor of foreign investments from the European Union to the Philippines.

Despite the COVID-19 pandemic which hit the Philippines last year, the country still received major investments from retail and design companies from Italy, he said.

With the passage of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act earlier this year, the Philippines wants to attract investments including those from Italy.

The CREATE reduced the corporate income tax rates from 30 percent to 25 percent for large companies and to 20 percent for micro, small and medium enterprises, as well as modernized the incentives system for investors.

“The CREATE law just makes it easier for our Italian investors to pursue their business plans in the Philippines,” Lopez said.

He also said Italy was the Philippines’ 21st trading partner, 25th export market destination and 18th import supplier last year.

Top Philippine exports to Italy include coconut oil, tuna, electronics, as well articles made from precious metals and silver.

Those being sourced by the Philippines from Italy, meanwhile, include flour-based food products and meat products, medicaments and various electronics products.