RP-EU trade agreement feasible, says industry group

The Philippines should immediately pursue a bilateral free trade agreement (FTA) with the European Union (EU), as the country lags behind most of its Southeast Asian neighbors in negotiating for similar agreements, a think-tank of the Philippine Chamber of Commerce and Industry (PCCI) said. “Philippine business cannot continue losing out on trade and investment opportunities with EU, especially when projections indicate substantial Philippine gains from an FTA are forthcoming,” the Universal Access to Competitiveness and Trade (U-ACT) said in a paper titled “Merits to Philippine Business of Having a Bilateral Philippines-EU Free Trade Agreement (FTA).”

“Philippine business must consider the danger of being crowded out of the EU and other markets by the more preferential access of its competitors, given their greater number of concluded FTAs and ongoing FTA initiatives,” U-ACT said.

According to the think tank, Indonesia has already signed a partnership and cooperation agreement with EU in July while Singapore, Thailand and Vietnam are on advance stages of negotiations. Brunei and Malaysia also would soon start talks with EU.

“EU might no longer be interested in engaging the Philippines if one country has already signed with them with the same market as ours,” Donald Dee, U-ACT chairman and chief executive, said.

In addition, the Philippines should also not wait for Association of Southeast Asian Nations (Asean) to seal a deal for the whole region since Asean-EU FTA talks were stalled in May because of Myanmar’s poor human rights record.

But Gabriel Munuera Viñals, European Commission delegation to the Philippines head of political, economic trade and public affairs section, earlier said the Philippines and EU are “not yet on each others’ radars” in terms of trade and investments since the Philippines lacks enthusiasm in engaging EU for talks.

U-ACT’s study also said that through a possible FTA with EU, European firms in the country would be “encouraged to expand their business and [infuse] more investments in the country.” –Ben Arnold O. de Vera, Manila Times