By Justine Irish D. Tabile, Reporter
THE PHILIPPINES will double down on securing a bilateral free trade agreement (FTA) with the US, which it assumes would be more possible under the administration of President Donald J. Trump, a Board of Investments (BoI) official said.
“The Philippines will push really hard for a bilateral FTA with the US,” BoI Managing Head and Trade Undersecretary Ceferino S. Rodolfo told reporters on the sidelines of a European Chamber of Commerce of the Philippines (ECCP) press event on Thursday.
“Looking at the track record of Trump and his announcements in confirmation hearings, we’d really like to take advantage of this to convert this into actual policy initiatives that would move forward the Philippines-US bilateral free trade agreement and sectoral agreements,” he added.
Mr. Rodolfo said the BoI sees a net positive impact from Mr. Trump’s second term on Philippine-US economic relations.
“He was actually the only recent US president that welcomed a bilateral FTA with the Philippines,” he said. “He did this in 2017 when he came here for the ASEAN Summit, and he issued, together with our president then, a joint statement saying that the US welcomes the Philippines’ interest in a bilateral FTA.”
Mr. Rodolfo said the Biden administration had been cautious towards the Philippines’ moves to seek a bilateral FTA.
“For (the Biden) administration, it was so difficult to even have a watered-down statement that would say that the US notes the Philippines’ interest in a bilateral trade agreement,” he said.
He also noted that the key officials of Mr. Trump, including US Trade Representative Jamieson Greer and US State Secretary Marco Rubio, have a welcoming attitude towards a bilateral FTA and a sectoral agreement with the Philippines.
“So, in summary, looking at what happened in the congressional hearings and the confirmation process of the key officials and key Cabinet secretaries in Trump’s administration, we really foresee a net positive impact on Philippines-US relations,” he added.
Mr. Rodolfo said the reason he mentioned the plans to work on an FTA with the US at an ECCP event is to pressure the European Union (EU) to hasten negotiations on the FTA.
“We hope that this will also, in a way, hasten the negotiations of the EU-Philippines FTA, noting that the US and the EU are demandeurs (seekers) on certain aspects of bilateral FTAs with the Philippines, most particularly the geographic indications (GIs),” he said.
“The US and the EU are competitors in the GIs. Because if you look at it, the interests of the US and the EU are really on agricultural products. But for us, it’s okay because we’re complementary when it comes to agricultural products,” he added.
The BoI official noted the Philippines has already opened up the sector to its current FTA partners — Australia, New Zealand, and China — which are producing almost similar competing products with the US and the EU.
“So, for us, it’s just a matter of diversifying our import sources for these products. But for them, they are really competing head-on when it comes to agricultural products on GIs,” he added.
However, Mr. Rodolfo said the EU has a head start since the US will still have to discuss the proposals, which are expected to take at least a year to be concretized.
“So, I really hope that the EU-Philippines FTA would be finished similar to how we finished the Philippines-European Free Trade Association (EFTA) FTA,” he added.
ECCP President Paulo Duarte said that they are looking forward to the second round of the negotiations for the EU-Philippines FTA.
“The second round of negotiations for the EU-Philippines FTA is set to take place here in the Philippines next month,” said Mr. Duarte. “The ECCP strongly believes that these negotiations will pave the way for enhanced cooperation between Europe and the Philippines.”
European Union Ambassador to the Philippines Massimo Santoro said that the next round will run from Feb. 10 to Feb. 14.
“I share very much also the importance of doing it well and doing it faster. And to do it fast, of course, we have to go together. It is a valid input for both sides, of course, because the better we do, the better the prospects for both our common goods and services are,” said Mr. Santoro.
He said that the EU has concluded FTAs with other Association of Southeast Asian Nations (ASEAN) countries Singapore and Vietnam.
“They both entered into force some years ago. Through the FTA, we wish to facilitate not only trading merchandise but also in services,” he added.
The EU-Philippines FTA is among the advocacy priorities of the ECCP, along with policies that promote economic liberalization and enhance the ease of doing business in the Philippines.
“As we champion the country as a preferred investment destination, we emphasize the integration of sustainability practices and digitalization, aligning with the Green Economy Program and the European Green Deal, among others,” Mr. Duarte said.
“Recognizing the strategic importance of critical raw materials in advancing clean energy, digital technologies, and other key sectors, the chamber also advocates for policies that ensure secure, sustainable, and diversified supply chains,” he added.
On Thursday, the ECCP launched its 2025 Doing Business in the Philippines Guidebook.
“This cornerstone publication remains an invaluable resource for businesses navigating the Philippine market, providing critical insights into the country’s investment environment, regulatory framework, and economic landscape,” said Mr. Duarte.
“Through this annual guidebook, we aim to equip investors with the tools and knowledge necessary to make sound decisions and capitalize on the vast opportunities the Philippines has to offer,” he added.
