Philippines, European Union make headway in FTA talks

MANILA, Philippines — The Philippines and the European Union (EU) are set to conduct the next full round of negotiations for a free trade agreement (FTA) next year, following the completion of the fourth round of talks last week.

Trade Undersecretary Allan Gepty, who is leading the FTA negotiations for the Philippines, said in a Viber message that the next full round would be held next year.

“But we will have a series of inter-sessional meetings and two in-person meetings in November and December,” Gepty said.

He said that the fourth round of FTA negotiations, held in Cebu last week, was productive, with the parties making progress in text-based negotiations.

In particular, the parties covered the following chapters in the negotiations: mutual administrative assistance on customs matters; trade and sustainable development; trade in goods; services and investment; digital trade; intellectual property; competition; rules of origin; government procurement; technical barriers to trade; sanitary and phytosanitary measures; state-owned enterprises; trade remedies; energy and raw materials; dispute settlement; exceptions; initial provisions and institutional provisions.

“We hope to stabilize the text within the year,” Gepty said.

He said the parties have also started market access negotiations for goods, services and investments, including discussions on modalities for government procurement.

“Our objective remains clear, that is, to promote not only trade and investments but also inclusivity, sustainability, good governance and resilience as we advance our Philippines-EU economic relations,” he said.

Earlier, EU Ambassador Massimo Santoro said that they hope to see the negotiations completed and the entry into force of the FTA before the Generalized Scheme of Preferences Plus (GSP+) expires.

“This would be the best way to guarantee we can continue benefiting from the benefits of the GSP+ mechanism, but also to expand these benefits,” he said.

He said the parties also want to move quickly on the FTA given challenges in the external environment, including protectionist policies.

The EU GSP+, which allows beneficiary countries like the Philippines to enjoy duty-free entry of 6,274 products to the bloc, will expire at the end of 2027.

For the European Chamber of Commerce of the Philippines, the FTA would not only safeguard the GSP+ benefits, but also drive growth, competitiveness and sustainability through greater trade, new investments and stronger integration into global supply chains.