Swedish Minister of Trade and International Development Cooperation Johan Forssell and the European Union – ASEAN Business Council (EU-ABC) expressed their support for the resumption of the Philippines-EU Free Trade Agreement (FTA) negotiations, during their separate meetings in May with Philippines Department of Trade and Industry (DTI) Secretary Alfredo Pascual.
According to Minister Forssell, Sweden, being pro-trade and pro-markets, is supportive of Philippines’ endeavors. He noted Swedish companies are now open to partner with Philippine companies and are interested in cooperating in terms of technology transfer to support industry development and innovation, and upgrading skills.
Likewise, the EU-ABC serves as the voice of the European businesses in the ASEAN region. As such, Secretary Pascual highlighted the organization’s support would provide the needed boost to the country’s intent.
Secretary Pascual said the support from the Swedish government and the EU-ABC is vital especially on re-starting the PH-EU FTA negotiations, “as we prepare to respond to the ongoing trend in economic growth and as we aim to make the Philippines a middle-income economy in the next few years.”
Secretary Pascual emphasized the Philippines is keen on pursuing the resumption of PH-EU FTA negotiations as it will bring in new avenues for economic growth and cooperation between the Philippines and the EU—one of the world’s largest single markets.
“Ultimately, what we are focusing on is an enhanced market access for Philippine goods and services to the EU as this will allow Philippine exporters to diversify their markets, reach a broader consumer base, and increase their export volumes,” he explained.
The reduction or elimination of tariffs imposed on Philippine goods entering the EU, which is part of the PH-EU FTA, will enhance the competitiveness of Philippine products, making them more attractive to European consumers and therefore enabling micro, small, and medium enterprises (MSMEs) and Filipino exporters to earn more profit. Aside from the benefits it brings to the export sector, the PH-EU FTA will facilitate the influx of foreign direct investments (FDIs) from EU countries, which the DTI sees as a huge contributor to knowledge transfer, job generation, and local industry development.
The DTI also holds, through the PH-EU FTA, the country will be better positioned to be a regional hub for sustainable, connected, and innovative manufacturing and services industries.
