On Monday 18 March, the European Union and the Philippines announced that they had resumed their bilateral negotiations with a view to concluding a free trade agreement. These were halted in 2017, under the presidency of Rodrigo Duterte, whose war on drug trafficking had prompted an international investigation.
At a press conference in Brussels on Monday, the European Commissioner for Trade, Valdis Dombrovskis, declared that “the conditions are right to take our trade relations to the next level”. In particular, he welcomed the “change of direction” brought about by the new government of Ferdinand Marcos Jr, elected in June 2022, and emphasised the business opportunities presented by the Philippine market.
The country is the fifth largest economy in the Association of Southeast Asian Nations (ASEAN), with a GDP of €370 billion and a population of 115 million. The EU is the Philippines’ fourth-largest trading partner, with trade in goods between the two sides amounting to more than €18.4 billion in 2022, while trade in services reached €4.7 billion in 2021.
The Philippines also has large reserves of essential raw materials, such as nickel, copper and chromite, which are vital for the EU’s ‘green’ and digital transition.
This resumption of relations comes at a time when Manila has recently signed a military agreement with the United States, and is seeking to distance itself from Chinese influence.
The Philippines is a “key partner for the EU in the Indo-Pacific region”, according to the Commission, and with this free trade agreement - as well as those being negotiated with India, Indonesia and Thailand - the EU hopes to strengthen its strategic engagement with this region.
The first round of negotiations to prepare the ground are expected to take place later this year, according to the Commission. (Original version in French by Isalia Stieffatre)