2014 trade between EU, PH seen at record high

TOTAL bilateral trade between the European Union and the Philippines is expected to hit a record high of 12 billion euros in 2014, buoyed largely by the sustained growth of the domestic economy.

According to EU Ambassador Guy Ledoux, Europe’s exports to the Philippines had grown by 25 percent, while the latter’s exports to the 28-member bloc grew by 10 percent to about 6 billion euros.

“The EU is one of the most important trade and investment partners of the Philippines. More importantly, this trade is in value added products. The EU imports from the Philippines include electronics, appliances, optical and photographic instruments and food. The EU supplies about 30 percent of total foreign direct investments to the Philippines, providing around 450,000 jobs,” Ledoux said in a statement.

That, Ledoux said, is a lot of jobs, and it can be raised even further.

In the first half of 2014, the EU’s foreign direct investments to the Philippines went up by more than 150 percent, mostly on productive sectors such as energy, manufacturing, transport and logistics, and electronics, the ambassador said.

To attract more FDIs, however, the Philippines will need to institute policies that will ensure a conducive business environment for investors.

While the EU Delegation to the Philippines welcomed the efforts made by the government to further liberalize key sectors of the economy, the government will need to “further look at amendments and measures such as the adoption of the Competition bill, a revised Retail Law, the adoption and implementation of the Customs Modernization and Tariff Act; and liberalizing foreign ownership caps.”

By the end 2013, bilateral trade in goods between the Philippines and the EU reached 10.8 billion euros, of which 5.7 billion euros represented EU exports to the Philippines, while 5.1 billion euros comprised the imports from the country.

In terms of foreign investments, the EU remained the largest investment partner of the Philippines with total investments rising further to 7.6 billion euros.