[In photo (L-R): French Treasury Deputy Director Denis Le Fers, DTI Secretary Alfredo Pascual, French Foreign Trade Minister Olivier Becht, and DTI Assistant Secretary Allan B. Gepty]
Philippines Department of Trade and Industry (DTI) Secretary Alfredo Pascual and Minister Delegate for Foreign Trade, Economic Attractiveness and French Nationals Abroad Olivier Becht expressed full commitment to deepen economic cooperation, trade, and investment between the Philippines and France during the 10th Joint Economic Committee (JEC) Meeting on June 20, 2023.
During the opening session, Secretary Pascual highlighted, “Among the thirty-three (33) JECs the Philippines has, France is one of the few JECs we hold at the ministerial level. This fact highlights France’s important role in our overall relations with Europe. Indeed, we accord high importance to the JEC as a mechanism to continuously enhance our economic relations, particularly in trade and investments.”
More French Investments and Infrastructure Projects
The main highlight of the JEC is the presentation of concrete deliverables and proposals on air transport service, infrastructure, agriculture, and energy. Minister Becht presented to Secretary Pascual three letters of intent extending French expertise and technical support in developing the Philippines’ dairy industry; and concrete proposals of Aéroports de Paris (ADP) on aviation and the French Treasury and Matière on road bridges.
Further, the Trade Ministers witnessed the signing of the two separate Memorandums of Understanding (MOUs) that were signed by the National Power Corporation (NPC) and the Mindanao Development Authority (MinDA) with Hydrogène de France (HDF) to facilitate the development of renewable energy and hydrogen power plants in the Philippines, the first project of its kind to be undertaken in Southeast Asia.
Both countries vowed to continue cooperation on ongoing projects such as the commitment of OCEA, a French company, to a PHP1.5 billion worth shipyard development investment in the Philippines; technical cooperation on maritime safety through the placement of a French marine expert in Manila; and on nuclear energy through an upcoming study mission. Just last month, the Philippines’ flag carrier—Philippine Airlines signed an MOU with Airbus for the purchase of nine (9) units of Airbus aircraft.
During the technical session of the JEC led by DTI Assistant Secretary Allan Gepty and Deputy Director Denis Le Fers, the Philippines likewise expressed its continued interest in forging space cooperation with the Centre National D’Etudes Spatiales (CNES), the French Space Agency.
Meanwhile, on aviation, Civil Aviation Authority of the Philippines (CAAP) Deputy Director General Edgardo Diaz reaffirmed the Philippines’ commitment to the MOU with the Direction GĂ©nĂ©rale de l’Aviation Civile (DGAC) or the French Civil Aviation Authority, which was renewed in 2021.
Updates on transportation and infrastructure projects were also discussed during the meeting. These include the existing ventures of French companies, such as Colas Rail, Alstom, Thales, and Egis, on the Metro Manila Subway and North-South Commuter Railway projects.
On agriculture, France’s support includes a possible deployment of a French dairy expert. France also shared their efforts in fighting the highly pathogenic Avian Influenza (HPAI) through zoning and vaccination.
The ongoing study on the Philippines’ electronic industries was also discussed during the meeting. This will pave the way for possible future partnerships in electronics, in support of the existing linkages such as the MOU between the ACSIEL Alliance Electronique and Semiconductor & Electronics Industries in the Philippines (SEIPI).
Secretary Pascual also highlighted nickel processing as a potential area for collaboration, taking into consideration two things: (1) The French territory of New Caledonia having significant nickel resources and is a major supplier of processed nickel for battery manufacturers, and (2) France as a global leader on electric vehicles. These are two sub-sectors where the Philippines has significant aspirations.
Increased Bilateral Trade and Investment Figures
Both Trade Ministers also underscored the growing trade and investment figures. In 2022, total trade between the Philippines and France grew to USD0.8 billion, up by 23%, from its 2021 level of USD1.5 billion. In particular, Philippine exports to France were up by nearly 50% from USD 14 million in 2021 to USD756 million in 2022.
Top products included electronics products, spectacle lenses, parts of airplanes, desiccated coconuts, and semiconductor devices. French exports similarly increased by 9 percent from USD990 million in 2021 to USD1 billion in 2022. The products include airplanes, medicaments, electronics, handbags, and meat products.
On the investment front, France is one of the Philippines’ top sources of foreign investments from the EU, with six-year total investments from 2017 to 2022 of PHP6.7 billion or USD130 million. These investments were in manufacturing; electricity, gas, steam, and air conditioning, supply; wholesale and retail trade; transportation and storage; information and communication; and administrative and support service activities.
Strong Call for the Renewal of the EU-GSP+ and PH-EU FTA
Supporting increased bilateral trade, Secretary Pascual underscored the benefits of the European Union’s (EU) Generalized Scheme of Preferences Plus (GSP+) in enabling the Philippines to enjoy broader market access and significantly boosting exports to the EU. With this, he called on France’s support for the renewal of the country’s GSP+ status.
France is the Philippines’ 3rd largest GSP+ market, 35 percent of Philippine exports to France, including exporters of spectacle lenses, crude coconut oil, vacuum cleaners, and tuna, benefit from the GSP+ scheme. The country’s GSP+ exports to France amounted to EUR309 million in 2022.
In addition, the Secretary Pascual underlined the timely resumption of the PH-EU Free Trade Agreement (FTA). He said, “The Philippine-EU FTA will continue the inroads provided by the EU-GSP+, including for micro, small, and medium enterprises. This FTA would maintain the preferences under the GSP+ and expand the scope of market access for goods, services, and investments, as well as include other fields that will facilitate trade between our two countries.”
The Philippines-France JEC is the longest-running dialogue between the Philippines and a European country since the JEC was established in 1994.
