The European Union (EU) and the Philippines have expressed their intention to negotiate a free trade agreement (FTA) that aims to improve market access and strengthen economic ties between them. The negotiation process began in 2016, and since then, various rounds of talks have taken place. Below are some key points about the EU-Philippines trade agreement and what it means for both parties.

Reducing tariffs to boost trade

One of the primary aims of the EU-Philippines FTA is to reduce or eliminate tariffs on goods traded between the two blocs. The EU is one of the Philippines` largest trading partners, accounting for about 15% of its total trade. However, the current tariffs on Philippine exports to the EU can be as high as 20%, making it difficult for Philippine businesses to compete with other countries that have preferential trade agreements with the EU.

By reducing or eliminating tariffs, the FTA will open up more opportunities for Philippine exporters to access the EU market. The EU, on the other hand, will benefit from increased access to the Philippines` growing consumer market, which has a population of over 100 million.

Addressing non-tariff barriers

Besides reducing tariffs, the EU-Philippines FTA is also expected to address non-tariff barriers that hinder trade between the two blocs. These barriers can take various forms, such as technical regulations, standards, and certification requirements. Addressing these barriers will make it easier for businesses on both sides to trade with each other and increase market access.

Protection of intellectual property

The FTA will also address the protection of intellectual property rights. This is especially important for Philippine manufacturers of products like pharmaceuticals, as they need to protect their intellectual property from being copied or counterfeited. The FTA will provide a framework for enforcing intellectual property rights and ensuring that both parties` interests are protected.

Expected benefits

The EU-Philippines FTA is expected to bring several benefits to both parties. For the Philippines, it offers improved market access to the EU, which is crucial for its economic growth. The FTA will also attract more foreign investments, as it creates a more predictable business environment. On the other hand, the EU will benefit from increased access to the vast Philippine market and a more transparent regulatory environment.

Conclusion

The EU-Philippines FTA represents a significant step forward in strengthening economic ties between the two blocs. By reducing tariffs, addressing non-tariff barriers, and protecting intellectual property rights, the FTA will create more opportunities for businesses on both sides. Once implemented, the FTA will enhance trade and investment ties, boost economic growth, and create more jobs in both the EU and the Philippines.