The European Union and the Philippines announced their intention to explore the relaunch of negotiations for an ambitious, modern, and balanced free trade agreement (FTA) â with sustainability at its core.
The announcement came on the eve of the EU-PH diplomatic relations’ 60th anniversary, and the first day of European Commission President Ursula von der Leyen’s official visit to the Philippines. She was formally received by President Ferdinand R. Marcos Jr. today at the Malacañang Palace.
The EU and the Philippines will shortly kick off a bilateral âscoping process’ to assess to which extent they share a mutual understanding on the future FTA. If this process concludes successfully, and after consultations with the Member States, the EU and the Philippines would be in a position to resume FTA negotiations.
Commission President Ursula von der Leyen said, âThe Philippines is a key partner for us in the Indo-Pacific region, and with the launch of this scoping process we are paving the way to taking our partnership to the next level. Together, we will realize the full potential of our relationship, creating new opportunities for our companies and consumers while also supporting the green transition and fostering a just economy.â
The EU aims for a comprehensive FTA with the Philippines that includes ambitious market access commitments, swift and effective sanitary and phyto-sanitary procedures, as well as the protection of intellectual property rights, including Geographical Indications.
Sustainability will also be at the heart of this agreement, with robust and enforceable disciplines on Trade and Sustainable Development (TSD). This includes supporting high levels of protection for workers’ rights, for the environment, and the achievement of climate goals.
The EU and the Philippines first launched negotiations for an FTA in 2015. The last negotiating round took place in 2017 and negotiations have since been on hold. However, the Philippines’ new administration has shown willingness to engage with the EU on key issues of importance, when it assumed office in 2022.
In her press statement, President von der Leyen also underscored discussions with President Marcos on the fight against climate change. One of the highlights of her visit is the signing of the Joint Declaration of Intent for a Green Economy Program through Global Gateway, EU’s investment plan for the world for sustainable infrastructure.
Team Europe, that is the European Union and the Member States, will contribute EUR466 million in financing, and provide expertise and access to technologies to support the Philippines in the transition to a circular economy, and the generation of green energy.
President von der Leyen likewise underscored discussions on turning the Philippines into a digital hub. Also through Global Gateway, the EU in partnership with a number of European companies, will launch this year the Digital Economy Package for the country. They will work on fast and reliable connectivity with submarine cables, on cybersecurity training, and on deployment and development of 5G.
Another point of discussions between the two leaders was on identifying projects that would develop the country’s local mining industry, support the communities, and contribute to a secure global supply of critical raw materials.
Lastly, President von der Leyen reaffirmed EU’s cooperation on security, and its support of a free and open Indo-Pacific. She noted, “An Indo-Pacific free of the threats of coercion is key to our stability, our peace and the prosperity of our peoples.”
According to her, the European Union underlines that the 2016 Award of the Arbitral Tribunal on the South China Sea is legally binding, and that it provides the basis for peacefully resolving disputes between the parties. “We are ready to strengthen the cooperation with the Philippines on maritime security in the region by sharing information, conducting threat assessments, and building the capacity of your National Coast Watch Centre and your Coast Guard,” she added.
