Thank you Secretary Pascual for being with us in Brussels today for the relaunch of negotiations for an EU-Philippines Free Trade Agreement.
The conditions are right to take our trade relations to the next level. Trade between the EU and the Philippines is already strong and has been growing at an impressive pace over the past decade.
But we can do more to realise the full potential of our trade relationship. After concluding an extensive joint stocktaking exercise at the end of last year, we are reassured that we share a commitment to strive for a state-of-the art agreement, with sustainability at its core.
Let me also recall how we got here.
This is not the first time that the EU and the Philippines are getting together to negotiate a trade deal. That moment came already in 2015, when we first launched negotiations for a Free Trade Agreement.
The last round took place back in 2017, after which no further rounds were scheduled due to the EU's concerns over policies of the former government of the Philippines. We then paused talks, as we are always firm in our conviction that our trade relations cannot be negotiated in a vacuum. Our trade relations must be based on respect for common values and fundamental conventions.
So, we warmly welcome the positive change of direction that your government has induced since it took office in 2022.
At the same time, we would also encourage further progress on the long-standing issues of EU concern related to human rights and labour rights.
I want to now recall that although we are resuming FTA-talks, our trade relations will continue to benefit from the Generalised Scheme of Preferences Plus (GSP+) – including the continuation of its monitoring mechanism.
While continued progress across the board remains important, let me also welcome progress made on some specific issues, notably on the so-called "war on drugs" policies, moving towards prevention and rehabilitation. We also acknowledge progress on the cases related to Maria Ressa and former Senator De Lima. Of course, we look forward to the full resolution of their cases, in line with the highest standards of due process and human rights.
It is thanks to these positive developments that we are now in a position to get the trade talks ball rolling once again.
Let me say a word now on economic case for the FTA, which is now even more compelling. The EU and the Philippines already have close trade ties, and we can go further:
- The Philippines has the potential to be a major market for EU industry, with a GDP of €370 billion and a population of over 115 million people.
- Trade in goods was worth over €18.4 billion in 2022, while trade in services was worth €4.7 billion in 2021.
- The EU is Philippines's 4th largest trade partner.
- And we are one of the largest investors in the Philippines [EU's foreign direct investment stock in the Philippines reaching €13.7 billion in 2021].
The FTA is projected to increase trade by up to €6 billion.
The Philippines is also an important producer of a number of critical raw materials, such as nickel, copper, and chromite, all of which are vital for the green transition. A deal with the Philippines will help us to strengthen our supply chains of these critical materials at a time when global supply chains are under increasing pressure.
All that being said, this agreement is about more than just making it easier to ship boxes of goods back-and-forth.
For one thing, our trade agenda must also support the green and digital transitions, which are areas where the Philippines has consistently voiced strong ambitions to be at the forefront. This FTA will allow for high standards for Trade and Sustainable Development.
Let me say one last word on geostrategic aspects. The Philippines is a key partner for the EU in the Indo-Pacific region. With this FTA, along with similar agreements underway with India, Indonesia and Thailand, we are strengthening our strategic engagement with this key region.
I would also like to pay tribute to the Philippines steadfast position in support of international law, through its continued solidarity with Ukraine in the face of illegal Russian aggression. In that light, I was glad that Secretary Pascual joined our Ukraine Solidarity event at the WTO's 13th Ministerial conference in Abu Dhabi.
To conclude, this agreement will open up new opportunities for businesses and consumers on both sides, promote sustainable trade practices, secure our supply chains and promote the EU's presence in a strategically important part of the world.
